Dogecoin Price Forms Descending Megaphone Pattern, $1 Target Possible
The Dogecoin price is projected to potentially reach $1, a target for many low-priced meme coins. A crypto analyst has identified a technical pattern called the "Descending Megaphone" in Dogecoin's price chart, suggesting that breaking out of this pattern could lead to a significant price rally.
Dogecoin Price Eyes $1 Breakout
Crypto analyst Trader Tardigrade on X (formerly Twitter) noted that Dogecoin's daily candle closed with a breakout into a "Descending Megaphone pattern." This pattern indicates increasing volatility during a downtrend, and a breakout above its upper boundary could indicate an upward price movement.
If Dogecoin surpasses the upper line of the Descending Megaphone pattern, it may signal the onset of a substantial rally. The Descending Megaphone is characterized by two diverging trend lines, where the upper line represents resistance and the lower line symbolizes support.
Trader Tardigrade indicated that despite entering this pattern, Dogecoin shows strength and momentum on the daily chart, setting a price target of $0.20 as part of its action within the pattern.
Trader Tardigrade is monitoring Dogecoin's behavior within this formation, especially movements towards the upper boundary. In response to his bullish outlook, a community member expressed skepticism about reaching the $1 target, to which Trader Tardigrade maintained that this goal is becoming increasingly feasible.
Bitcoin Price Discovery To Influence DOGE Rally
Another community member suggested that Dogecoin might not achieve the $1 target without Bitcoin undergoing price discovery. Trader Tardigrade responded with "step by step."
Recent discussions among analysts highlight Bitcoin's price discovery as a critical factor. Analyst 'Crypto Feras' mentioned that if Bitcoin breaks key resistance levels, it could revisit $72,000, creating favorable conditions for a bullish market.
A Bitcoin bull run often precedes bullish trends in other cryptocurrencies. Trader Tardigrade confirmed that following a price discovery, Dogecoin could enter a major rally. Currently, Dogecoin trades at $0.164, reflecting a 13.72% increase in the last 24 hours per CoinMarketCap.
