Dogecoin has recently been fluctuating around the price of $0.19, hovering in a tight range of $0.20 to $0.185 over the past day. This behavior follows a significant drop below the important $0.22 support level last week. Despite this downturn, Dogecoin enthusiasts are still managing to keep the price above $0.18. Notably, current trends may hint at a potential surge towards $0.50.
Analyzing the Monthly Chart: A Historic Rounded Bottom
Recent insights from an analysis on TradingView suggest that Dogecoin is on the verge of completing a rounded bottom pattern on its monthly chart. This formation, which has evolved over nearly four years, marks the aftermath of the explosive 2021 bull run that saw DOGE skyrocket to over $0.73.
After reaching that peak, the price of Dogecoin faced significant downturns, experiencing a prolonged correction through 2022 and early 2023. Yet, each dip created a series of higher lows, leading to a smooth and distinct rounded base, which appears to be nearing completion. The recent chart reveals clear interactions with the right side of this pattern, suggesting a pivotal moment ahead.
In the realm of technical analysis, a rounded bottom is seen as a strong reversal sign, particularly when evident after a downtrend. The current arc in the DOGEUSDT pair implies that bulls are steadily reclaiming territory with every significant swing low since mid-2022. Crucially, each time the price touches the rounded base, a bounce towards a more favorable position follows. If this trend continues, upcoming movements could propel Dogecoin past its previous high around $0.48 set in December 2024.
The Potential Upside: Targeting $0.50
If the rounded bottom format remains intact and Dogecoin witnesses a confirmed bullish breakout, projections indicate a target above $0.50, ushering in a new higher high. Such a surge could represent a remarkable increase of approximately 150% from the current levels. The resistance area highlighted in red on the monthly chart aligns with significant barriers observed in December 2024, just below the all-time high established in 2021.
In technical contexts, breakouts from rounded bottoms can occur rapidly once the neckline resistance is breached, especially when this is validated across higher timeframes like the monthly chart. Consequently, if Dogecoin manages to close above $0.50, it could swiftly lead the price toward new all-time records beyond $0.73.
Market analysts emphasize the importance of closely monitoring upcoming price movements, as either a bounce or rejection from this critical level could dictate the next substantial shift. Nevertheless, considering the robust nature of the rounded bottom and Dogecoin’s tendency to form higher lows, the outlook is increasingly bullish. A decisive monthly close above May’s high of $0.27 would be the initial clue signaling that a breakout might be imminent.
