Dogecoin has broken out of a double bottom formation, with analysts predicting potential upside targets at greater heights.
Crypto analyst Jireon highlighted the development, noting that DOGE had successfully broken above a long-standing resistance trendline. The chart shows the meme coin forming two clear price bottoms before surging above the neckline.
Jireon described the setup as a textbook double bottom pattern, adding that the current price action suggests a bullish continuation may follow.
The first bottom formed in April when DOGE dipped to about $0.130. After attempting a recovery and getting rejected at higher levels, the second bottom formed around July 5, once again touching the $0.15 region.
This second test of the same support zone, followed by a strong bounce, validated the formation of the double bottom, a pattern often considered a precursor to bullish trend shifts.
The neckline of the pattern was clearly established around $0.231, which had acted as a resistance level throughout the consolidation phase.
On July 25, Dogecoin convincingly broke above this neckline with a daily close well above $0.231, accompanied by a noticeable uptick in trading volume of $4 billion, a key requirement for confirming breakout strength.
As of now, the price has pulled back to retest the neckline, hovering just around the $0.231 zone. This retest is a critical moment; if DOGE holds this level and bounces, it would likely confirm the breakout and pave the way toward the next resistance at $0.310.
At this press time, DOGE is trading at $0.2303, a 4.9% decline in the past day. Despite the 13.8% decline in the past week, Dogecoin still boasts a 40.6% rise in the past month.
Momentum Builds Above the 200-Day Moving Average.
Fellow analyst Jonathan Carter added further validation to the breakout signal. In a separate analysis, Carter explained that Dogecoin was holding above its neckline and bounced off the 200-day moving average. This widely recognized technical indicator often defines long-term trend direction.
According to Carter, this bounce signals commitment to the upward move and suggests buyers are stepping in at key support levels.
Carter described the breakout level as stable, noting that it had held firm through the retest. The daily chart also shows a reaction from the market as DOGE approached the neckline, reinforcing the likelihood that the breakout is legitimate. These technical signals suggest that the price may continue to rise if volume and momentum persist.
Price Targets Emerge as Dogecoin Holds Support
With the neckline and moving average acting as dual support levels, analysts have identified potential price targets. Carter projected that if DOGE maintains its current structure, it could reach higher resistance zones at $0.28, $0.33, and possibly $0.41. These targets align with prior price levels where DOGE has previously faced selling pressure.
Jireon shared a similar view in his chart projection. While both analysts avoided making absolute predictions, their analyses suggest that Dogecoin’s current formation may lay the groundwork for a sustained uptrend.
Other Analysts Remain Bullish
Meanwhile, prominent analyst Trader Tardigrade noted that Dogecoin may enter a new bullish phase after forming its first green Heikin Ashi candlestick on the monthly chart.
Tardigrade noted this signal follows five months of decline, with similar past patterns leading to strong rallies. Historical trends show that green monthly candles in late 2022 and October 2024 preceded significant price surges.
Other analysts, including MangoMan4, MasterAnanda, and CryptoELITE, have predicted targets ranging from $0.85 to as high as $5 if the uptrend continues. Also, Bitcoinsensus reported a bullish MACD crossover, historically linked to gains of up to 446%. The latest signal points to a possible 610% surge in Dogecoin’s price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
