Dogecoin Price Breaks Out of Double Bottom Pattern, DOGE to $0.41?

Following the establishment of a double bottom pattern, Dogecoin's price has decisively surpassed a significant resistance level, reigniting interest in the popular meme coin.

DOGE is now under close observation by market analysts, with some projecting potential targets at $0.28, $0.33, and even $0.41. A recent surge in meme crypto activity saw Dogecoin whales acquire over 130 million DOGE, further fueling bullish reversal predictions.

Dogecoin Price Bullish Reversal Confirmed

The price of Dogecoin exceeded its neckline at $0.231 before experiencing a slight decrease at the time of this report. This movement completed a double bottom formation, with the initial bottom occurring in April and the second around July. Both dips found support near the $0.15 region, indicating strong buyer interest at those levels.

Notably, the neckline, a crucial resistance point during Dogecoin's consolidation phase, had been in place since the early part of Q2. After successfully breaking through this level, DOGE has maintained its position above it, a positive sign suggesting the potential for continued upward momentum.

Dogecoin Holds Above Key Moving Average

Dogecoin is also trading above its 200-day moving average. According to analyst Jonathan Carter, this moving average serves as a critical indicator of the long-term trend direction. Carter noted that DOGE rebounded off this level during the recent rally, implying robust demand from buyers at that support area. This convergence of the moving average and neckline has created a dual-support structure. If it holds, this setup could provide a solid foundation for further price appreciation. The daily chart also reflects positive price action around these levels, reinforcing analyst expectations.

Analysts Forecast DOGE Targets Between $0.28 and $0.41

Another analyst, who initially highlighted the DOGE breakout chart, identified near-term resistance at $0.28. He observed that this level previously acted as an area where sellers entered the market during past rallies. A successful breach of this resistance could pave the way for Dogecoin to advance towards the next targets of $0.33 and potentially even $0.41.

Jonathan Carter echoed this sentiment in a separate analysis, confirming the steady nature of the meme coin's breakout and the positive response from traders to the neckline area. Carter also established DOGE price targets between $0.28 and $0.41, based on historical price data from 2022 and early 2024.

Other analysts have presented scenarios where DOGE could potentially climb towards $0.85 or even $5, assuming the current trend structure remains intact.

Whale Accumulation Suggests Confidence in Support Zone

In the past 24 hours, wallets holding between 10 million and 1 billion DOGE have accumulated 130 million coins. This accumulation occurred as Dogecoin's price dipped below $0.23, following a 14% decline over the preceding seven days. According to analyst Ali Martinez, this trend is generally indicative of strategic accumulation.

Santiment data revealed that this accumulation coincided with the price testing the neckline zone. Historically, whale purchases during such corrections have often preceded an increase in the meme coin's price.

These large holders may be positioning themselves for a bullish continuation, particularly following the pattern confirmation.

Trader Tardigrade also pointed out the formation of a potential smaller double bottom on the 4-hour chart. The analyst noted that the two lows near $0.2160 and $0.22, separated by a modest short-term rebound, are forming the base of a double bottom. Furthermore, DOGE resistance around $0.2435 remains firm but could be overcome if buying volume increases in the coming sessions. At the time of reporting, Dogecoin's price was near the neckline, trading at $0.21.

Previously, industry analysts had debated the potential consequences of Dogecoin's confirmed breakout, with most anticipating a bullish rally. Analysts highlighted the triangle pattern and breakout-retest as key signals, targeting $0.45 to $1 if the trend persists.