Dogecoin Breaks Out of Wedge Pattern: Is a 44% Upside Target?

Dogecoin (DOGE) has recently made a significant move by breaking out of a descending wedge pattern, suggesting a potential bullish reversal. This breakout has caught the attention of traders and analysts, including Ali Martinez, who highlighted the pattern on X. The breakout indicates a possible upside target of 44%, providing a fresh perspective on DOGE’s price action.

The descending wedge pattern on Dogecoin’s chart is characterized by converging trend lines, with the upper trend line descending at a steeper angle compared to the lower trend line. This pattern is generally considered a bullish reversal signal. The breakout above the upper trend line of the wedge suggests a potential upward move.

The chart also includes Fibonacci retracement levels, crucial for identifying potential support and resistance areas. These levels are drawn from the high point to the low point of the wedge, marking significant points at $0.18444 for the 0.236 level, $0.16133 for the 0.382 level, $0.14479 for the 0.5 level, $0.12994 for the 0.618 level, $0.11140 for the 0.786 level, and $0.08915 for the 1 level.

Notably, the price has retested the breakout level, showing signs of holding above the 0.618 Fibonacci retracement level at $0.12994. This level can act as a strong support, bolstering the bullish case.

If Dogecoin continues its upward momentum, the next potential resistance levels based on the Fibonacci retracement are $0.14479 at the 0.5 level, $0.16133 at the 0.382 level, and $0.18444 at the 0.236 level. While the chart does not show volume, the breakout and subsequent retest are crucial. A sustained move above the breakout level, supported by increased trading volume, would further strengthen the bullish outlook.

Dogecoin’s price stands around $0.1236 today, with a 24-hour trading volume of $952,437,916. This represents a -5.14% price decline in the last 24 hours but a 0.86% price increase over the past 7 days. With a circulating supply of 150 billion DOGE, the market cap is valued at $17,945,729,145.