Dogecoin is back in the news. After months of trading sideways, the memecoin darling has rallied more than 17% in a day, now at around $0.25. What’s behind the sudden surge?
Chart observers attribute it to a traditional technical configuration, the double bottom pattern.
A double bottom pattern, which usually acts as a bullish reversal signal, has developed on Dogecoin’s chart. In the opinion of crypto analyst Ali Martinez, the price movement since April created two low points with a minor recovery. If DOGE remains above it, the setup indicates a possible rally towards $0.42.
Martinez says that verification of the breakout would send Dogecoin much higher. Volume is already starting to rise, with more than $19 billion in transactions. DOGE is up over 22% in the past week alone.
Another by, Daan Crypto Trades, reported that Dogecoin has been in a long consolidation. He added that if DOGE breaks through the $0.26 resistance level, the next stop could be $0.30 or even higher.
Historically, Dogecoin is famous for extended periods of silence followed by explosive movements and numerous analysts figure this is the beginning of one. Watch for the levels of $0.25 and $0.26.
Rejection at or near these resistance levels can result in a shallow pullback. But if the pattern is correct, Dogecoin may be building towards its next huge push.
Also Read: Bitcoin, Ethereum, XRP Price Prediction: New ATH Next Week?
