Dogecoin Price Forms Inverse Head And Shoulders Pattern To Suggest Quick Reversal To $0.25 📈
Dogecoin has entered negative price territory over the past week, showing a 6.11% drop. However, the emergence of a bullish pattern, specifically an inverse head and shoulders, is evident on the 1-hour candlestick chart. This follows a corrective drop that briefly pushed Dogecoin to $0.215, with the recent trading sessions showing higher lows and firmer support levels.
Crypto analyst Klejdi Cuni identified this pattern on the DOGE/USDT chart, which consists of three distinct troughs, signaling a short-term bullish reversal. The setup suggests that a breakout above the neckline resistance around $0.228 could trigger an upward move.
If this pattern unfolds, Dogecoin price is projected to first reach $0.239, a level previously significant as both a support and resistance point. Success at this point could pave the way for a rally to $0.25, marking a recovery to Dogecoin's recent local peak in May.
However, the bullish outlook depends on confirmation of the breakout; failure to sustain the breakout zone or a drop below $0.222 could weaken the bullish case. As of now, Dogecoin trades at $0.2245.
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