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Can this Dogecoin price pattern pull DOGE out of the dump and trigger 50% move?

  • Dogecoin price is forming a double bottom or the W pattern on the three-day chart, signaling a 48% rally.
  • DOGE needs to overcome the $0.0965 and $0.1277 key levels to kick-start this ascent to $0.1890.
  • Invalidation of the bullish thesis will occur if the dog-themed crypto shatters the $0.0686 level. 

Dogecoin price shows a W pattern formation of the three-day chart and hints at a bullish future. However, DOGE holders have already suffered a loss after the dog-themed crypto failed to pump on April 20 (420). 

Also read: Should you buy PEPE, DOGE, SHIB and other meme coins before April 20? Will Elon Musk come through?

Dogecoin price plans its next move

Dogecoin price has formed W or a double bottom, which forecasts a bullish outlook for DOGE holders under certain conditions. This technical formation for DOGE contains two distinctive lows set up between May 7 and April 23. The three swing highs of these peaks can be connected using a horizontal trend line to form a neckline at $0.1277. 

A decisive three-day candlestick close above this level will confirm a breakout of Dogecoin price from the W pattern. In such a case, the double bottom setup forecasts a 48% upswing to $0.1898, obtained by adding the distance between the second peak and the valley to the breakout point at $0.1277. 

But Dogecoin price will need to face and overcome the $0.0965 hurdle to kick-start the larger outlook. Beyond $0.1277, DOGE could pause its rally around another critical resistance level at $0.1624. 

DOGE/USDT 3-day chart

DOGE/USDT 3-day chart

While Dogecoin price seems ready for an uptrend, a nosedive in Bitcoin price could negatively impact this setup for DOGE. In such a case, a breakdown of the $0.0686 level will create a lower low and invalidate the bullish thesis.

This development could see Dogecoin price revisit the $0.0686 support floor.

Read more: I bought $200 meme coins, so you don’t have to, here’s how my shitcoin bag of PEPE, WOJAK and KERMIT is doing

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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