In recent analysis, market experts are eyeing a potential turnaround for Dogecoin (DOGE), with indicators pointing towards bullish patterns. Charting Guy’s analysis on the X platform has highlighted the emergence of an inverse head and shoulders (IH&S) pattern, signaling a potential bullish reversal for the meme-inspired cryptocurrency.
One notable aspect of the current market sentiment is the formation of an inverse head and shoulders pattern on the DOGE chart. This pattern typically appears after a downtrend and is considered a bullish indicator. The left shoulder formed in late April, followed by the head in early to mid-May, representing the lowest point in the recent trend. The right shoulder is now in development, with its bottom aligning with the analyst’s suggestion of a buying opportunity.
Technical indicators, such as the Relative Strength Index (RSI), suggest that DOGE is currently neither overbought nor oversold, indicating a balanced market sentiment. However, confirmation of the bullish reversal would require a breakout above the neckline of the IH&S pattern, which could act as a resistance level. Analysts are closely monitoring volume levels, as increased volume during the formation of the right shoulder could validate the pattern’s bullish signal.
Should DOGE break above the neckline, the theoretical target of the IH&S pattern suggests a potential upward trajectory, with analysts eyeing the March highs as a possible target. However, traders are advised to consider risk factors and implement stop-loss measures to mitigate potential losses in case the reversal does not materialize.
Previous analysis of DOGE highlighted strong support levels and bullish patterns, including IH&S and ascending triangles, which target previous highs. Despite a recent price decline, analysts remain optimistic, targeting a potential breakout towards higher levels.
As of the latest data, Dogecoin is trading at $0.1412, showing a slight increase in the last 24 hours but a decline over the past week. With a circulating supply of 140 billion DOGE, the cryptocurrency is valued at a market cap of over $20 billion.
