Dogecoin Forms Bullish Pattern After 6.11% Weekly Decline

Dogecoin has experienced a decline in price over the past seven days, with a decrease of 6.11%. However, this price movement has led to the formation of a bullish pattern on the 1-hour candlestick timeframe chart. Following a corrective drop that briefly pushed Dogecoin to $0.215, recent trading sessions have shown higher lows and firmer support levels. This has resulted in the emergence of an inverse head and shoulders pattern, which suggests potential bullish targets for the Dogecoin price.

Crypto analyst Klejdi Cuni identified this inverse head and shoulders pattern on the DOGE/USDT chart on the 1-hour candlestick timeframe. The pattern consists of three distinct troughs, with the central one being the deepest and forming on May 25th. The right shoulder formed between May 23 and May 24, indicating a possible short-term bullish reversal. According to the analyst, this smaller-scale formation is more relevant for short-term traders seeking quick movements. At the time of writing, Dogecoin is in the process of completing the left shoulder, testing the neckline resistance around $0.228. A breakout above this level with sufficient volume confirmation could trigger a swift upward movement.

If the bullish inverse head and shoulders setup materializes as expected, the analyst predicted that Dogecoin's price would first surge toward the $0.239 zone. This level acted as support for many hours on May 22 before breaking down and acting as resistance during a brief upward attempt in the late hours of May 23. A successful breach of this area would open the door to the next target. The next short-term price target, if Dogecoin successfully clears $0.239, is at $0.25. This level is significant because a rally to $0.25 would represent a full recovery to Dogecoin’s most recent local peak in May. This could mark the beginning of a rally continuation to higher price levels toward $0.3 and beyond.

The chart projection outlines a step-wise movement where the breakout leads to immediate upside action, followed by consolidation before a secondary leg pushes the Dogecoin price to $0.25. However, confirmation is crucial. Failure to hold the breakout zone or a breakdown below the right shoulder, currently around $0.222, would weaken the bullish outlook and could lead to a retest of $0.21. At the time of writing, Dogecoin is trading at $0.2245.