Dogecoin is showing recovery after a recent downturn, forming an accumulation base and indicating a possible bullish trend.
Current Situation with Dogecoin
Dogecoin has bounced back from a low of $0.145 recorded on June 23 and is currently trading in the range of $0.162-$0.167. TradingView analyst Setupsfx has identified changes indicating the possibility that DOGE is entering a bullish accumulation phase according to Wyckoff accumulation theory.
Historical Patterns of Dogecoin
Chart analysis reveals striking similarities between current price actions and DOGE's historical movements. After spiking to $0.2286 in March 2024, the price dropped, forming several rejection points, including $0.141 and $0.135. The eventual breakout from this accumulation phase in late 2024 propelled the price to $0.48, validating the Wyckoff accumulation theory.
Prospects and Projected Outcomes
The analysis indicates that DOGE is now trading at a critical buying level, but confirmation is needed before entering positions. If the current accumulation phase completes successfully, a potential gain of 214.6% from current levels is possible, targeting approximately $0.52. However, risk management protocols are essential as the structure has not yet confirmed a definitive bullish breakout.
Considering the current market situation and historical patterns, Dogecoin may potentially transition into a growth phase. However, investors should be cautious and consider risks when making decisions.
