Dogecoin price could explode, as technical indicators point to a bullish reversal on the daily chart. After weeks of consolidation, DOGE seems to be forming a classic inverse head-and-shoulders pattern. This is a strong reversal formation that often precedes major upward movements. According to the current chart setup, a breakout could occur within seven days, with the projected DOGE price target landing between $0.42 and $0.43.
The chart’s structure is clear. Indeed, the left shoulder formed mid-March, and the head was carved out in early April with a deeper low. Also, the right shoulder has been developing steadily through May. All three valleys create a descending neckline that has now been decisively broken.
Dogecoin Bulls Are Regaining Control
This neckline breakout, marked by a high-volume push above resistance, is the first key signal that the bulls are regaining control. The breakout zone is further validated by a retest of the neckline and the trendline convergence. Successfully retesting the neckline could confirm a sustained upward move. The right shoulder’s higher low suggests stronger buyer interest and reduced selling pressure.
Adding to the mix, the DOGE price has broken a multi-month downward trendline stretching back to early December 2024. The trendline served as dynamic resistance, rejecting several prior rally attempts. However, the latest move shows a clean breakout, increased trading volume, and price stability above the breakout point. This sets the stage for a rally towards the next supply zone between $0.42 and $0.43.
The supply zone is a key resistance area that previously triggered heavy sell pressure. This region now represents the next critical challenge for bulls. If Dogecoin price manages to reach this zone in the coming days, it will likely do so quickly, as there’s minimal resistance between the breakout point and that upper range.
Healthy Market Structure
Price action over the past month indicates a series of higher lows, reflecting healthy market structure and growing momentum. While minor pullbacks have occurred, they’ve been shallow and controlled. This is exactly what is expected during forming a bullish reversal pattern. As such, DOGE’s recent retracements should be viewed not as weakness but as preparation for the next leg higher.
At the time of writing, the price of DOGE is trading around $0.216, demonstrating strong stability above the $0.20 psychological support. The neckline breakout and the inverse head-and-shoulders formation serve as textbook indicators of a trend reversal. Hence, if the current structure holds, a breakout toward $0.42- $0.43 could be imminent.
With Dogecoin’s strong technical foundations, a retest of the breakout zone could offer traders a final entry opportunity before the next impulsive move.
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