Dogecoin Dip Might Be Brief: Here’s the Upcoming Goal

The recent surge of over 78% in Dogecoin’s value over the past 38 days seems to signal more than just a temporary rise, according to insights from two independent analysts shared on X. Both experts highlight the persistence of classical continuation patterns, despite DOGE hitting a peak of $0.2597 on Sunday. They suggest that while some profit-taking has occurred, the subsequent target appears to be in the mid-$0.30s.

One analyst’s twelve-hour chart from Binance illustrates a nearly perfect inverse head-and-shoulders pattern developed in late February and confirmed in early May. The left shoulder formed in mid-March around $0.142, while the head formed at approximately $0.129 in early April, and the right shoulder completed at the beginning of May at $0.164.

A descending neckline that had limited price movement over the preceding two months intersected around the $0.20 mark; this resistance was breached last week amid the heaviest twelve-hour trading volume seen since February, serving as a key indicator that the breakout is supported by substantial trading activity rather than speculative volatility.

Subsequent trading pushed DOGE close to $0.26, followed by a slight retreat to $0.217. The momentum remains supportive: the RSI, which briefly indicated an overbought condition during the breakout, has since cooled to the low-60s, suggesting that any overbought states have been adjusted without undermining the bullish framework.

The measured-move interpretation for an inverse head-and-shoulders pattern—determined by the distance from the neckline to the head—projects an initial target in the $0.26-$0.28 range, aligning with the target noted on the analyst’s chart, which aims for the low-$0.30s.

The second analyst has analyzed the four-hour timeframe, identifying a similar positive impulse within a descending parallel channel ranging from $0.22 to $0.26, which resembles a typical bull flag. Upon breakout, a specific target of $0.32928 is indicated.

This projection is further supported by a time estimate, suggesting the next significant movement could transpire in the coming days. Should the flag fail, invalidation would occur if closing prices dip below the lower channel level near $0.20; if that happens, buyers might find support in a demand zone ranging from approximately $0.16 to $0.21, coinciding with a rising trend line that has sustained price movements since early April.

Overall, the two analyses provide a synchronized strategy. If Dogecoin maintains its position above the $0.20 mark, the subsequent target might shift toward the $0.32 area.

At the time of reporting, Dogecoin was trading around $0.228, positioned near the breakout line of a descending trend channel that has influenced price activity since December of last year. It is important to note that the midline of this channel is slightly below $0.20, highlighting its significance for the continuation of the bullish trend.

Featured image generated using DALL.E; chart data from TradingView.com