Dogecoin (DOGE) has pulled back 7% this week, but technical analysts are spotting multiple chart patterns that could signal an explosive upward move ahead. As recent analysis predicted a major Dogecoin breakout within 7 days, new forecasts suggest even higher targets.
Multiple Technical Patterns Point to Major Rally
Prominent crypto analyst Jake Wujastyk has identified a descending triangle formation that began after DOGE hit $0.26 on May 11. The pattern shows prices consolidating between a declining resistance line and horizontal support, typically a precursor to a significant breakout.
“The chart setup is too compelling to ignore,” notes Wujastyk, who projects a potential doubling of price to $0.45 once key levels hold. This 114% upside target comes as the meme token tests critical support levels.
Inverse Head & Shoulders Pattern Emerges
Adding to the bullish outlook, analyst Bitcoinsensus has spotted an inverse head-and-shoulders pattern formed between March and May. The pattern shows:
- Left shoulder: March 11 low at $0.14
- Head: April 7 bottom at $0.13
- Right shoulder: May 6 support at $0.16
Price Targets and Timeline
Both analysts see significant upside potential within a short timeframe:
- Wujastyk Target: $0.45 (114% increase)
- Bitcoinsensus Target: $0.42-$0.43 (100-104% gain)
- Expected Timeframe: 7 days
Key Support and Resistance Levels
Traders should watch these critical price levels:
- Current Support: $0.21
- Key Resistance: $0.26 (May 11 high)
- Major Resistance: $0.48 (December high)
FAQ Section
What is causing Dogecoin’s current price movement?
Technical patterns and increased trading volume suggest accumulation at current levels, while the broader crypto market sentiment remains bullish.
When could the breakout occur?
Both analysts project a significant move within the next 7 days, pending confirmation of pattern breakouts.
What are the key risk factors?
Traders should monitor volume confirmation and broader market conditions, as failed breakouts could lead to further consolidation.
Featured image: Shutterstock
