In a stunning move on Wednesday, popular dog-themed meme coin Dogecoin has regained upside traction again, pushing its price back to the $0.17 resistance level. With DOGE displaying upward action, crypto analysts foresee a continuation of the newfound strength as key bullish technical signals unfold.
Aftermath of Dogecoin’s Second Support Retest
Dogecoin’s price is back above crucial resistance levels that previously capped its upward attempts. After a period of prolonged bearish action, the dog-themed meme coin may be on the cusp of a much-needed turnaround in the short term.
Trader Tardigrade, a seasoned crypto expert and investor, has outlined a bullish technical signal that hints at a potential rally for DOGE. The expert’s analysis shows that DOGE has recently retested a critical support level for the second time.
This repeated bounce off the same price floor observed on the weekly time frame chart could serve as a launchpad to a fresh upward trend, targeting higher price levels. Such a recurrent recovery is testament to DOGE’s robust stability and resilience during a period of volatility.
Looking at the chart, Dogecoin witnessed a significant upward move after touching this support trend line, which occurred in September last year. With the meme coin retesting this critical trend line, Trader Tardigrade is confident that DOGE’s price will bounce strongly as seen in the previous scenario.
Once this bounce is confirmed and mirrors the last result, DOGE could rise beyond the $0.90 price range in the upcoming months, marking a new all-time high and a potential top in the ongoing bull market cycle. This move is likely to put an end to the current bearish action of DOGE as bullish momentum builds up once again.
Key Chart Formation Hints At An Impending Rebound For DOGE
DOGE’s price continues to display signs of a shift from a downward trend to an upward trend. Delving into Dogecoin’s price action in the 1-day time frame, Trader Tardigrade reported that the meme coin has formed a crucial setup, particularly an Ascending Channel formation.
An ascending channel pattern is a technical pattern characterized by two upward-sloping, parallel trendlines that connect higher highs and higher lows. This pattern points to a period of price consolidation within an uptrend, which could lead to a rally following a breakout to the upside.
Trader Tardigrade highlighted that meme coin is currently positioned at the lower support of the ascending channel pattern, with the expectation of a breakout to the upside. Once DOGE charges upward, the upper line is acting as the next crucial resistance, which is situated at the $0.176 level.
At the time of writing, Dogecoin was trading at $0.174, demonstrating a more than 7% increase in the last 24 hours. Fresh optimism is returning to the market, as indicated by a 105% rise in trading volume in the past day.
Featured image from iStock, chart from Tradingview.com
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