A recent technical analysis by analyst @ali_charts on X has drawn attention to Dogecoin, which may be forming a falling wedge, indicating a possible bullish reversal.
What is a Falling Wedge?
A falling wedge is characterized by converging trendlines from lower to higher prices. A study published in 2025 in the Journal of Financial Markets indicates a 65% success rate for bullish breakouts when volume decreases during consolidation.
Market Perception in the Crypto Community
According to @ali_charts' chart, a tightening price range may signal buyer accumulation. Optimistic X users, like @Spahija_23, suggest a breakout could push DOGE towards $0.43, while skeptics like @Shan_Specter highlight lower highs tempering bullishness.
Potential Risks for Dogecoin
Inflation poses a significant counterargument. Unlike Bitcoin's fixed supply, Dogecoin's circulating supply is increasing with 5 billion new coins added annually since 2014, potentially diluting value if demand does not keep pace. Support levels around $0.10-$0.15 have been noted.
For now, Dogecoin enthusiasts are closely watching. The falling wedge offers hope, but inflation and market volatility could undermine the $0.265 target.
