Dogecoin Drops 7% But Analysts See 114% Upside

Dogecoin experienced a 7% decline early this week, erasing much of its gains from the previous Friday. However, two chart analysts suggest that this pullback may be short-lived. According to Jake Wujastyk, the meme token is positioned for a significant upward movement if key levels hold. Additionally, fellow analyst Bitcoinsensus has identified further upside potential based on detailed chart patterns.

Jake Wujastyk identified a descending triangle pattern that began forming after Dogecoin reached $0.26 on May 11. Prices fluctuated between an upper resistance line and a lower support line, tightening the wedge. Earlier, DOGE surged 8% in a single session, nearing the top trend line. The coin has since dipped back into the wedge but remains within the two lines. If the pattern breaks upward, Wujastyk argues that it could pave the way for a rapid price increase. Although volume has not yet spiked, the chart's shape indicates potential for a breakout.

Wujastyk expects a “twofold rally” from current levels, meaning a rise from around $0.21 to approximately $0.45, which is about 114% higher. He is confident that the chart action supports taking a Dogecoin trade. His bullish outlook is contingent on a bounce off the wedge’s support, followed by a strong push through resistance. If this occurs, traders could see quick gains.

Another analyst, Bitcoinsensus, sees a similar move to above $0.40 but based on a different pattern. He points to an inverse head-and-shoulders formation that developed between March and early May. The left shoulder was from a March 11 low at $0.14, the head from an April 7 dip to $0.13, and the right shoulder near $0.16 on May 6. After the pattern broke out, DOGE hit a trendline that has capped gains since December’s $0.48 high. Despite a pullback from that supply zone, Bitcoinsensus suggests that a further push could drive Dogecoin back toward $0.42–$0.43 within seven days. These targets imply a 100–104% jump from the current price.