Dogecoin Awaits Risk-On Ignition Amid Wyckoff Accumulation Pattern
Crypto analyst Osemka highlights that Dogecoin is in a Wyckoff accumulation phase, mirroring the "OTHERS" index closely. The price action suggests a test phase, with DOGE currently trading between $0.18 and $0.22.
Key Observations
- Dogecoin's historical patterns show sequences of rounded basing formations before significant price increases.
- The current chart setup indicates a potential upcoming breakout, similar to past events in 2017 and 2021.
- The daily chart shows Preliminary Support (PS), Selling Climax (SC), Automatic Rally (AR), and a Secondary Test (ST), supporting the accumulation narrative.
- A sharp decline into a "Spring" phase was observed, indicating potential end-of-phase C shakeout.
Resistance levels are noted at $0.26–$0.28 and around $0.32, with the latter as a key point for confirming an upward trend shift.
Market Context
- Osemka links Dogecoin’s movement to broader market trends, particularly noting its typical late response to risk-on rotations.
- He predicts a possible final dip before a markup phase, contingent on Bitcoin liquidity and broader market signals.
- Other altcoins like PENGU are currently outperforming DOGE, while TAO is highlighted as a strong contender.
The near-term focus remains on maintaining higher lows within the $0.18–$0.22 range and overcoming resistance levels to transition from accumulation to markup.
