A double bottom is forming on Dogecoin's chart, indicating a potential bullish trend, especially after consolidation at key support levels.
Double Bottom and Its Implications
Market analyst Tom Tucker has identified a double bottom formation on Dogecoin's chart, indicating a possible bullish breakout towards the $0.2596 resistance level. This technical pattern formed near strong support at $0.1467, where buyers have consistently defended against price declines.
Technical Indicators and Bullish Signal
According to technical analysis, the Relative Strength Index (RSI) has risen above 47 and is close to the neutral 50 level, indicating that bearish pressure has subsided and buying momentum is gaining control. This RSI improvement typically precedes long-term price increases.
Fibonacci and Resistance Levels
Fibonacci retracement levels provide additional context for resistance zones based on DOGE's previous major cycle. Trading is currently just below the 0.786 Fibonacci level at $0.17640, which serves as immediate resistance.
The forming double bottom on the Dogecoin chart, coupled with improving technical indicators, opens the door for a bullish trend if the resistance level is breached.
