Dogecoin (DOGE) has been making headlines, and a recent analysis suggests exciting things are on the horizon. Let’s break down what’s happening.
The Power of Three (PO3) Pattern
Crypto analyst Trader Tardigrade used a technical analysis method called the Power of Three (PO3) to examine DOGE’s recent price action. The analysis shows DOGE has completed the accumulation, manipulation, and distribution phases of the PO3 pattern. This suggests a potential bullish breakout is imminent.
What happened?
- Accumulation (June 25-26): The price consolidated in a tight range, suggesting buyers were accumulating DOGE.
- Manipulation (June 27-28): A sharp drop below $0.15 shook out weaker investors, a common tactic in the crypto market.
- Distribution (June 29 – onwards): DOGE bounced back, showing strong buying pressure and breaking above resistance levels. This phase is characterized by aggressive bullish momentum.
The analyst highlights the recent price action above $0.15 as confirmation of the distribution phase’s completion.
A Bullish MACD Crossover
Adding to the positive outlook, DOGE recently saw a bullish Moving Average Convergence Divergence (MACD) crossover on the daily chart. This is a significant technical indicator, suggesting a potential shift from bearish to bullish momentum. This is the first such reversal in weeks, following a downtrend that started in early June.
What’s Next for Dogecoin?
If the bullish momentum continues and DOGE holds above key support levels, Trader Tardigrade’s analysis suggests a potential price target above $0.28 in the coming weeks. This is based on the completed PO3 pattern and the bullish MACD crossover. This is, of course, just an analysis, and the actual price movement could differ.
