Dogecoin, the largest dog-themed meme coin, has benefited notably from the rising momentum in the broader crypto market, leading to substantial gains in the last few days. As the crypto market rebounds, DOGE has demonstrated price movements and trends that spark the potential for a major rally in the short term.
Bullish Signs For Dogecoin Following A Retest
Looking at Dogecoin’s recent price action, the meme coin has undergone a major movement that hints at an impending upswing shortly. Market expert and investor Trader Tardigrade pointed out the development in a recent analysis on the X (formerly Twitter) platform, capturing the community’s attention.
Specifically, DOGE has successfully broken out of a Descending Triangle formation, triggering fresh optimism among investors for a possible move to higher levels. The breakout confirms the strength of the support level, which increases the probability of upward momentum in the short term.
According to Trader Tardigrade, Dogecoin broke out of the bullish pattern at the bottom, reflecting a resurgence toward its upside trajectory. As a result, the expert is confident that the chart pattern might result in a subsequent explosive increase in DOGE’s price, possibly to a new all-time high.
Given the rising positive market sentiment, Dogecoin could attract a wave of old and new investors, which might trigger a near-term upswing. In the meantime, this anticipated move may set the stage for the larger view about Dogecoin surging to the $1 milestone in the ongoing cycle.
It is worth noting that Dogecoin’s breakout from a descending triangle pattern comes prior to a retest of a critical chart pattern. Trader Tardigrade cited a complete retest to the Broadening Wedge formation, fueling optimism about an impending rally.
Typically, the broadening wedge pattern has been a precursor for substantial growth. It is a key chart pattern that indicates elevated price volatility and possible trend reversals. Trader Tardigrade highlighted the retest as a classic bullish price action before notable upswings to new highs.
With DOGE displaying upside potential, investors and traders are closely monitoring key support and resistance levels in order to navigate the meme coin‘s next major move. Considering the similarities in recent price performance with past trends, Dogecoin’s path to a new peak is probable.
January To Be A Bullish Month For DOGE?
Since the beginning of the month, DOGE has seen impressive gains and positive investor sentiment. Observing past price movements in January, the meme coin may be set for extended gains in the coming days.
IC News, examining DOGE’s monthly performances, noted that January has mostly been a pivotal month for Dogecoin. Over the previous 10 years, the meme coin has averaged an outstanding 83.9% return during the month.
However, not all of January has been bullish for DOGE. Out of the last 11 January, Dogecoin has seen positive returns just 5 times, with the median outcome being a 3.86% loss.
