Will The Dogecoin Price Resume Its Rally Toward $1? Inverse Head And Shoulders Pattern Has Answers

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The Dogecoin price is showing signs of a potential breakout as an Inverse Head and Shoulder pattern, a classic bullish reversal indicator, appears to be forming on the charts. Following weeks of sideways consolidationthis technical setup could signal the return of Dogecoin’s upward momentum and a possible steady upward surge toward the long-awaited $1 mark.

Dogecoin Price Chart Signals Bullish Reversal

A new technical analysis by crypto market expert Klejdi Cuni suggests that Dogecoin may be gearing up for a potential bullish move as a textbook Inverse Head and Shoulder pattern appears to be taking shape on the charts. The current setup is forming on a lower timeframe, suggesting a bullish trend reversal may be in progress.

While the $1 milestone remains elusive for the meme coin, the analyst’s projection suggests a steady yet swift climb in the meme coin’s price above $0.23. If bullish momentum continues and certain resistance levels are broken, Dogecoin could eventually push toward $1.

For now, Cuni’s chart shows that Dogecoin’s price is now approaching the neckline of the Inverse Head and Shoulders pattern, which represents the horizontal resistance line that connects the highs between the shoulders. At the time of the analysis, DOGE was trading at $0.228, just below the neckline resistance.

A confirmed breakout above this neckline could trigger a rally resumption. If this breakout occurs, the chart outlines two potential upward targets. The first “quick target” is placed at $0.239, aligning with the local resistance level from a previous price high. Following this, DOGE is also expected to reach a higher price target at $0.25, representing a much stronger resistance level than previous thresholds.

DOGE Faces Potential Crash After Rally Above $1

In other news, crypto analyst Trader Tardigrade has shared a bullish forecast for Dogecoin, anticipating a potential leap in price in the near term. However, this rally may be short-lived, as the analyst warns of a significant price correction following the upward move.

Sharing a monthly Dogecoin price chartTrader Tardigrade highlights striking similarities between the meme coin’s current setup and one that played out from 2014 to 2021. In the past cycle, Dogecoin completed a rounded bottom accumulation phase over several years, followed by a breakout above the long-term resistance, a sharp upward move, and then a pullback in the form of a Falling Wedge pattern.

The analyst confirms that DOGE has recently completed a similar accumulation phase and has broken above its key resistance level. If the historical pattern repeats, the next phase could be a dramatic upward move to new all-time highs between $0.9 and $1.4. After this projected surge, Dogecoin might decline toward the $0.22 and $0.14 levels, potentially entering a prolonged consolidation phase within a Falling Wedge pattern reminiscent of the multi-year retracement that followed its 2018 peak.

Featured image from Getty Images, chart from Tradingview.com

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