Dogecoin Validates Daily Trend Shift with Breakout, Retest, and Emerging Uptrend
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Dogecoin’s value is entering a new upward trend after an extended period of decline. Analyzing the daily candlestick chart indicates that this popular cryptocurrency is showing signs of a trend reversal, suggesting a substantial transition from bearish to bullish sentiment.
Analyst Marks Daily Trend Reversal on Dogecoin Chart
A well-known cryptocurrency analyst, Trader Tardigrade, has identified a confirmed trend reversal for Dogecoin. In a recent update on X (formerly Twitter), he noted that DOGE’s daily chart has transitioned from a downtrend to an uptrend. This assertion is supported by careful technical analysis of Dogecoin’s price movements.
Related Insights
Recently, Dogecoin’s value surged past a declining trendline that had characterized its downturn for several weeks. This breakout took place on April 22, when Dogecoin closed above $0.165 on the daily candlestick chart, marking the initial sign that the coin was breaking free from its bearish path.
Soon after surpassing the downward resistance line, Dogecoin’s price retraced between April 23 and April 24 to confirm the same trendline, but this time as support. Notably, the previous resistance trendline remained robust as a support level during this retest. Following this successful confirmation, Dogecoin began its upward ascent, indicating a continuation of the new uptrend.
This sequence of breakout, retest, and continuation is a classic technical validation of a trend reversal. The successful retest of this trendline instills greater confidence that the bullish reversal is genuine and not a fleeting signal.
Image From X: Trader Tardigrade
Bullish Objective: $0.25 By Early May
With the daily trend now on the rise, attention turns to how far this uptrend can carry Dogecoin. Based on Trader Tardigrade’s findings, the cryptocurrency could continue to rise in the upcoming days, possibly surpassing the quarter-dollar mark very soon. As depicted in the chart shared by Trader Tardigrade, the next target for Dogecoin’s price is approximately $0.25 by the first week of May.
If this target is met, a rise to $0.25 would be a significant achievement, considering Dogecoin has been in a downward trend for over 10 weeks. Thus, breaking through to $0.25 would signify Dogecoin’s highest price since late February and a robust recovery from its recent lows around $0.14 to $0.15. This movement would also represent approximately a 51% increase from the breakout level of $0.165.
However, $0.25 is merely a short-term target. In a different analysis, Trader Tardigrade pointed to Dogecoin’s long-term chart, showcasing a rounded bottom formation. The associated chart suggests that in prior cycles, Dogecoin’s price demonstrated a rounded bottom prior to entering explosive upward phases. This recurrent pattern, now visible again on the monthly chart, implies that Dogecoin may be approaching another significant breakout. In this context, the long-term price objective is set at $2.8.
Image From X: Trader Tardigrade
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At present, Dogecoin is trading at $0.18.
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