The price of Dogecoin (CRYPTO: DOGE) has been showing mixed signals as it consolidates near current support ahead of a potential breakout from a large monthly chart pattern.

What Happened: Dogecoin is currently trading at $0.196 at the time of writing, having pulled back from the $0.22 support region last week.

The recent price decline began from the $0.2250 zone, pushing DOGE below both the $0.220 and $0.20 levels.

As the bears attempted to drive the price as low as $0.1855, buyers stepped in to defend lower support areas.

Despite the recent weakness, Dogecoin bulls have managed to maintain the price structure above the $0.18 level. This defense of key support comes as technical analysts have identified a major pattern formation on the monthly timeframe.

Dogecoin Price Action:

Dogecoin is currently consolidating in a narrow trading range. It has been moving between the $0.20 resistance and $0.185 support over the past 24 hours.

On the hourly chart, Dogecoin is trading below the $0.20 level and the 100-hourly simple moving average. A connecting bullish trend line has formed, providing support at $0.1910.

Relative Strength Index (RSI): The RSI is showing mixed signals. It is still in overbought territory on the four-hourly chart but is indicating neutrality on the hourly chart.

Moving Average Convergence Divergence (MACD): The MACD is rapidly losing momentum in bearish territory on the hourly chart, suggesting a potential slowdown in the bearish trend.

Monthly Pattern Formation:

According to technical analysis, Dogecoin is forming a rounded bottom pattern on the monthly chart, a process that has taken nearly four years to unfold.

The formation began with the explosive 2021 bull run that propelled Dogecoin to its all-time high above $0.73.

After that peak, Dogecoin entered an extended correction phase throughout 2022 and early 2023.

Each decline was met by buyers, who pushed the cryptocurrency higher, forming a smooth curved base that is nearing completion on the right side.

Rounded bottoms are powerful reversal patterns typically encountered at the apex of major trends.

In this instance, every contact with the rounded base line has resulted in bounces toward higher highs since mid-2022.

The current monthly candle is testing the base support again. A bounce from this level could send Dogecoin price to a new higher high, taking it above December 2024’s peak of $0.48.

Crucially, bulls have managed to regain control at each major swing low since the 2022 correction began.

This consistent defense of support levels further strengthens the technical case for the pattern’s completion.

Price Targets And Resistance Levels:

If the rounded bottom structure holds, the projected target could take Dogecoin above the $0.50 mark.

This level of price action would represent an increase of approximately 150% from current price levels.

The targeted zone coincides with major resistance from December 2024 and is located just below the 2021 all-time high.

A confirmed breakout above the $0.50 level could propel the price toward new record highs above the $0.73 peak.

In the immediate term, the next resistance level on the upside is anticipated around the $0.20 zone. The first major resistance for bulls appears to be at $0.2060, closely followed by the 50% Fibonacci retracement level.

The next significant resistance band is expected at the $0.2120 level. A sustained move above this zone might propel the price toward the $0.2250 resistance and potentially even the $0.2340 resistance.

Conversely, if Dogecoin fails to break out of the $0.20 resistance, it could set the stage for another decline.

The initial support level on the downside is at $0.1910 and the trend line, with major support at $0.1850.

The main support level to watch out for is at $0.1720. A break below this level could lead to further price drops toward the $0.1650 or even $0.1550 levels in the near term.

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