Dogecoin has recently formed a textbook-level rounded bottom pattern, which is a significant bullish signal in technical analysis, indicating that this downward trend may truly be about to reverse.
The current price is stuck around $0.17, and although it has dropped 6% along with the broader market, seasoned investors are eyeing that $0.23 neckline resistance level. If it breaks through this position with volume, there’s a high probability of a violent surge of 84%, heading straight for $0.44.
The Money Flow Index has quietly crossed the 50 level, indicating that large funds are stealthily building positions. In the past week, whales have aggressively scooped up 320 million DOGE, raising the holdings to a historic high of 24.98 billion coins, clearly gearing up for a massive rally.
However, one must be cautious as the ADX indicator shows that the upward momentum is somewhat weak. If the MFI gets pushed back down by the 50 line, we might have to consolidate at the bottom for a while longer. The key is whether it can hold the $0.14 support level; if it breaks this position, we need to be wary of a potential drop to $0.11.
Currently, the market is like a compressed spring; it can either soar to $0.44 or break through support and continue to test lower levels. The 'farmers' have already raised their sickles, just waiting for a breakthrough signal.
