Dogecoin has recently become the center of attention in the market again. Cryptocurrency analysts point out that Dogecoin, which has been horizontal for a long time, may be on the verge of a critical break. Some signs in technical indicators reveal that the price has the potential to gain strong momentum.
Bullish wind in technical analysis
Tardigrade, one of the analysts closely followed in the crypto market, stated that there may be a significant rise for Dogecoin. According to his analysis, Dogecoin could gain value by up to 3,000. The target price in the long term was shared as 4 dollars. This figure represents a new record that has never been seen in the history of Dogecoin.
According to Tardigrade’s reviews, the current price structure is similar to the big rally in 2017. During that year, Dogecoin gained significantly in a short period of time. Now, a similar technical structure attracts attention and signals the preparation of a new upward wave.
Experts who have recently analyzed technical indicators emphasize that positive incompatibilities have increased. While the price is drawing a downward trend, some technical indicators have turned upward. These incompatibilities can be an early sign that sellers are starting to lose power.
Critical formations and resistance levels
In shorter term charts, a reverse head-and-shoulders formation has formed. This pattern is generally considered a strong reversal signal indicating a change in market direction. Analysts point out that a close above the neckline of this structure increases the likelihood of a short-term rally. In particular, the $0.10 level stands out as the first strong resistance point.
“Dogecoin’s current movements are very similar to previous bull cycles; the patterns seen on the chart indicate that a new rise may be in the preparation phase.”
However, although an optimistic expectation prevails in a significant part of the market, there are also analysts who are cautious. In the evaluation shared by Bitcoinsensus, it is stated that Dogecoin still maintains its multi-cycle structure where multiple rising and falling waves are intertwined. It is noted that although current rally expectations have strengthened thanks to this structure, the risk of decline in the short term has not disappeared.
Two different scenarios are on the table in the short term
From time to time, hints of a bearish head-and-shoulders formation are also observed in technical charts. It is stated that if this scenario occurs in the market, Dogecoin may decline to the level of $ 0.05. Such a situation may mean that a rapid recovery will be postponed for a while longer.
According to CryptoAppsy data, Dogecoin is trading around $0.09475, down 0.81 percent in the last 24 hours. As technical indicators become clearer in the coming days, investors are expected to encounter a clearer picture.
