Dogecoin’s price has been on a bit of a rollercoaster lately. After a strong run in late April, reaching $0.18, it’s pulled back. But some analysts think this dip might be temporary.
A Bullish Chart Pattern Emerges
Crypto analyst Trader Tardigrade spotted a “Diamond Bottom Reversal Formation” on the Dogecoin chart. This pattern often signals a shift from a downward trend to an upward one. The diamond shape is formed by converging trendlines, and a breakout usually leads to a significant price increase. Trader Tardigrade predicts a potential rally to $0.35 if this breakout happens.
Momentum Indicators Point Upward
Trader Tardigrade also points to positive signals from the Dogecoin Price Momentum Oscillator (PMO). The PMO measures price changes and helps identify trend reversals. A shift to “green time” on the PMO usually means prices are about to rise.
Meme Coin Mania on the Horizon?
Crypto trader Kamran Ashgar is also bullish on Dogecoin. He sees the Relative Strength Index (RSI) indicating a building recovery. He even suggests that a Dogecoin surge could trigger a broader meme coin rally, creating a “meme coin mania.” He bases this on a 28-day trend analysis showing a potential breakout. He believes this isn’t just a simple breakout, but a significant signal of upward movement.