Dogecoin Forms Bullish Pattern, Gains 56.67% in 90 Days

Dogecoin has recently formed a bullish “double-bottom” pattern on its daily chart, which has sparked speculation among analysts and investors about a potential upward reversal. This pattern, which is historically a bullish reversal signal, suggests that Dogecoin could be on the verge of a significant price increase, potentially reaching $0.20 and even $0.25.

Currently, Dogecoin is trading near $0.17, showing signs of recovery after months of sideways movement between $0.13 and $0.25. The formation of the double-bottom pattern, with a strong support zone around $0.15, indicates a potential breakout above a descending channel. This move is further supported by DOGE’s ability to hold strong support levels between $0.155 and $0.160, which could determine the next price movement.

Despite the cautious market sentiment due to political tensions and mixed technical signals, Dogecoin’s recent performance has been notable. Over the past 90 days, memecoins, including Dogecoin, have outperformed nearly every other crypto sector, posting an average return of 56.67%. This trend is consistent with historical behavior, where memecoins have posted explosive gains of between 300% to 500% during peak hype cycles. Such surges often rely on major catalysts or celebrity endorsements, highlighting the volatility and potential upside of memecoins.

Adding to the bullish case, analysts have identified an ascending triangle on the weekly timeframe. This pattern shows accumulation at higher lows and suggests that Dogecoin is forming one while repeatedly testing resistance in the $0.25–$0.29 range. The cryptocurrency has so far managed to defend trendline support at around $0.17, but the recent breakdown has raised some concerns. If the bulls manage to reclaim this ascending support, Dogecoin could revisit its previous highs. However, if the breakdown continues to gain strength, it may indicate further short-term weakness before any recovery attempt.

Dogecoin’s performance this year has been volatile. In January, it rallied to $0.33 as its local high for the year. Since then, the price has dropped by more than 50%, hovering around $0.20 before eventually slipping to the current $0.16–$0.17 range. For DOGE to maintain its current recovery, it must hold support between $0.155 and $0.160. These levels are supported by both historical accumulation zones and short-term technical structures. If support fails, the resulting crash could bring DOGE back to $0.14 or even $0.12. On the upside, DOGE faces immediate resistance at the 20-day EMA, followed by tougher barriers around the 50-day and 100-day EMAs. A breakout above $0.20 would confirm the bullish pattern and pave the way for a retest of the $0.25 resistance zone.

Overall, whether DOGE breaks out toward $0.25 or slips further downwards will depend on how the current consolidation plays out. Until then, DOGE remains one of the most watched and speculated assets in the crypto space.