- Dogecoin (DOGE) is forming a bullish falling wedge pattern on the 2-day chart, signaling a potential breakout.
- The falling wedge pattern suggests market constriction, with a breakout likely leading to a significant price rise.
- DOGE’s current setup suggests strong support at the lower trendline, with a potential breakout targeting $0.1950.
Clifton Fx pointed out a bullish technical pattern for Dogecoin (DOGE). Analyst noted that DOGE is still in a falling wedge formation in the 2-day chart of DOGE/USDT, where he added the formation is generally considered bullish. The price in this case has been in a wedge pattern, and if a breakout happens, the upside is highly likely to be massive.
Bullish Falling Wedge Pattern
The falling wedge pattern is considered to be among the most bullish patterns in technical analysis. The distance between two touchpoints drawn on the trendlines gradually decreases over time as the price oscillates between the lines. This further implies that the market is constricting, and a breakout of the upper bound leads to an increase in price with impulses.
Source: X
The current setup of DOGE/USDT in price shows with much effectiveness the price oscillation in these trendlines where the price struggles to break through the lower trendline. This strong support can be attributed to the fact that buyers may be positioning themselves for an upper parallel line breakout.
According to the 2-day chart of Clifton Fx, Dogecoin has recently been trading within the wedge after an upsurge in the previous period. This is typically the juncture with the wedge shape at the top, thus indicating that the price is likely to break up or down soon.
Dogecoin Target Price Breakdown
Based on the analysis, if the price of DOGE moves above the upper ‘average,’ it may have the following target: $0.1950, which will be a massive achievement from the current price. A green box on the chart indicates the estimated potential of DOGE to rise as soon as the bulls are triggered.
The breakout is expected, and it has been awaited by traders and analysts to maximize profit since the early stages of trading. This would work to unlock a new phase of the DOGE bull run if it were to rally past this level and create a convincing breakout.
From the 2-day chart, the falling wedge formation indicates a good chance of an upward breakout for Dogecoin. Given its high potential, the price movement is attracting significant attention, with expectations of a breakout. The next couple of days will determine whether DOGE will continue its rally and potentially break new heights. Traders should keep an eye on price formations before entering any significant trades.