The price of Dogecoin has established at least three optimistic chart formations, suggesting a likely increase in the upcoming months.
On Monday, Dogecoin (DOGE) reached an intraday peak of $0.1680, reflecting a 27% rise from its lowest point earlier this month.
This ongoing recovery has mirrored the trends seen in Bitcoin (BTC) and other meme cryptocurrencies, such as Fartcoin (FARTCOIN) and Dogwifhat (WIF). Bitcoin has surged past $84,000, while futures linked to the Dow Jones and Nasdaq 100 indices soared by over 400 points.
Typically, DOGE shows strong correlation with Bitcoin and the broader stock market. Its recent rebound has unfolded in a high-volume context, with its 24-hour trading volume increasing by 5% to nearly $1 billion.
This price movement occurs amid growing optimism among traders regarding the potential approval of a Dogecoin ETF within this year, as indicated by rising odds to 64%. The core reasoning is that Dogecoin operates on a proof-of-work mechanism similar to Bitcoin, making it less likely for the SEC to categorize it as a security.
Crypto analysts on social media platforms are expressing a bullish sentiment towards DOGE. In a recent analysis, a well-known expert highlighted the weekly chart to forecast a possible rally to $0.29, provided the token maintains support at $0.13. He derived this support level by connecting the lowest swing points observed since 2023.
Technical Analysis of Dogecoin’s Price
The daily analysis indicates a potential continuation of the rebound, as multiple bullish chart patterns have emerged for Dogecoin. Recently, a double-bottom formation was confirmed at $0.1425, a crucial support level tested on both March 11 and April 7.
Moreover, DOGE has successfully broken out of a falling wedge pattern, characterized by two descending converging trendlines. Typically, this pattern leads to a robust bullish breakout at the point of convergence—a condition that seems to be in play.
The KDJ indicator has also signaled a bullish divergence, with all three lines trending upwards, indicating increasing upward momentum. This divergence occurs when the indicator rises even as the asset’s price declines, similar to other oscillators.
Consequently, the initial price target for DOGE is set at $0.2060, marking its peak on March 26, which represents a 25% increase from the current level. However, a drop below the support level at $0.1425 would invalidate the bullish outlook and suggest further declines.