Dogecoin Forms Bullish Pattern, Eyes 50% Price Recovery

Dogecoin has recently formed a bullish falling wedge pattern on its 4-hour chart, indicating a potential breakout and a possible reversal in its downward trend. This technical pattern is characterized by two downward-sloping trendlines that converge, typically signaling a decrease in downward momentum as the price approaches the wedge’s apex. Analysts are closely monitoring this development, as it could pave the way for a significant price recovery.

Trader Tardigrade, a prominent crypto analyst, highlighted that Dogecoin’s price is currently forming this falling wedge pattern. The support level is holding near $0.164, which has prevented further declines. If the price manages to break above the upper boundary of the wedge, there is a strong possibility of a rally toward the $0.2600 level, representing a recovery of over 50% from its current price of $0.1686.

Another analyst, Javon Marks, noted that Dogecoin is forming higher lows, suggesting that upward pressure is still present. According to his analysis, DOGE could rally as high as $0.6533 in the short term and potentially extend toward $1.25, based on historical price patterns. This optimistic outlook is supported by recent on-chain data, which shows a consistent trend of Dogecoin exchange outflows since late 2023. Over $5 billion in DOGE has been moved off exchanges, with $658 million withdrawn since early May. This movement indicates that holders are opting for self-custody, which reduces selling pressure on exchanges.

Furthermore, Dogecoin’s funding rate has remained positive since June 13, currently standing at 0.0056%. A positive funding rate reflects market participants' expectations of future price increases. This bullish sentiment, combined with the technical setup and reduced exchange supply, could support a reversal in Dogecoin’s price trend. The falling wedge pattern on the 4-hour chart continues to attract traders’ attention, as it presents a potential opportunity for a significant price recovery.