Dogecoin Signals 132% Rally as Chart Pattern Shows Strong Rebound

Dogecoin's emergence of a bullish double-bottom pattern suggests a potential rebound, targeting $0.3753, which represents a significant 132 percent upside.

A notable 13% surge in trading volume within a single day indicates a resurgence of interest in DOGE, coinciding with the development of this promising technical setup.

Interestingly, the ongoing dynamic between Elon Musk and Donald Trump has not directly impacted Dogecoin's trajectory, signaling a departure from the personality-driven volatility that once characterized its movements.

Since June, Dogecoin has experienced a period of relative stability, accompanied by a decrease in investor activity. The cryptocurrency has declined by 38% from its May peak. However, current market data suggests that Dogecoin may be poised for a rebound, driven by the formation of a double-bottom chart pattern, widely recognized as a bullish indicator.

At the time of this report, Dogecoin is trading at $0.1595, according to CoinMarketCap data, with a market capitalization of $24 billion. Trading volume has reached $815 million, reflecting the aforementioned 13% increase. The neckline of the pattern is established at $0.2596, with a support level at $0.1445. Technical analysis projects a price objective of $0.3753, representing a 132% upside.

The chart setup indicates building bullish momentum.

This bullish outlook is predicated on the pattern's height, which measures 44% between the support level and the neckline. Applying this same percentage above the neckline yields the projected target of $0.3753. This analysis remains valid as long as Dogecoin maintains support above $0.1445. A breach of this level could alter market sentiment and potentially drive the price down towards the $0.10 psychological level.

Source: Tradingview

Despite Elon Musk's past influence on Dogecoin and his involvement in U.S. politics, the cryptocurrency has remained largely unaffected by recent headlines. For example, Dogecoin's price did not react when Musk was appointed to the Department of Government Efficiency earlier this year. Analysts believe that the token has now become less reliant on personalities and is responding more directly to technical signals.