Recent analysis indicates that Dogecoin's price may be entering one of its common bullish patterns on a monthly chart, attracting attention from investors and analysts.
Key Resistance Levels for Dogecoin
On-chain data from Glassnode shows that over 20% of the Dogecoin supply was last moved around $0.073. There are three main resistance levels: $0.18, $0.21, and $0.36, where a significant portion of token holders previously bought their DOGE. Analyst Ali Martinez noted that about 8.9% of DOGE's supply was transacted at $0.18, 7.2% at $0.21, and 3.8% at $0.36. These levels could delay upward momentum unless the market absorbs selling orders with sufficient demand.
Repeating Triangle Structure
A cycle of compression and sharp surges is observed on the Dogecoin price monthly chart. Analyst Trader Tardigrade identified a symmetrical triangle formation on the 1-month timeframe. This trend resembles previous periods when narrow compression levels were followed by vertical races. The recurring nature of this setup suggests that Dogecoin may be approaching another breakout stage.
Double Bottom Pattern Targets
In a separate analysis, Trader Tardigrade spotted a potential double bottom formation on the Dogecoin daily chart. This pattern typically indicates a potential bullish reversal structure, with two lows around the $0.13–$0.14 range and a neckline near $0.265. The analysis forecasts a Dogecoin price target of $0.476 based on the vertical distance between the neckline and the bottom, emphasizing the importance of the $0.26-$0.27 range as a breakout area.
The analysis indicates that Dogecoin could be on the verge of important changes, where a breakout above the $0.21 resistance may lead to significant growth. Meanwhile, the potential formation of a double bottom also points to short-term prospects.
