Dogecoin (DOGE) Breaks Out of Falling Wedge, Targeting $0.1607 and $0.1670

Dogecoin’s price action on the 1-hour candlestick timeframe chart has been defined by a sharp decline

Dogecoin price action has been defined by a sharp decline on the 1-hour candlestick timeframe chart since April 14, slipping into a falling wedge formation. However, this three-day downtrend shows signs of an imminent reversal. According to an analysis by crypto analyst KledjiCuni on the TradingView platform, the correction phase may have come to an end, and Dogecoin could be gearing up for a short rally.

As the analysis of Dogecoin’s bullish potential unfolds, we observe that the meme coin recently broke out of a falling wedge, a pattern often signaled as a precursor to bullish momentum. Notably, this falling wedge formation, which saw the Dogecoin price fall from $0.17 to $0.15 over three days, is part of an extended bearish sentiment that has persisted for almost two months.

However, Dogecoin is now starting to break out of this falling wedge, a move that marks a shift in short-term sentiment as price begins to reclaim upward momentum despite lingering bearish pressure in the broader crypto market.

Currently, Dogecoin appears poised to embark on a new upward trend. The breakout has occurred, but the analyst predicts a pullback to the $0.1550 zone in the immediate term. This correction would serve as a retest of the breakout structure and could help confirm support before the next leg upward.

This short-term dip does not invalidate the bullish setup. Instead, it could offer an entry point for traders anticipating further upside.

Once Dogecoin completes its expected pullback toward the $0.1550 zone, the next projected move is a continuation of the bullish reversal, with price action that cancels out the entire correction that began on April 14. Interestingly, analyst KledjiCuni identified two key resistance levels to watch in the short-term rally phase. The first resistance level is at $0.1607, a level that formed a lower high in the falling wedge formation.

If Dogecoin manages to clear $0.1607 with strong volume, this will push the price towards the second key resistance at $0.1670. This price level aligns with the apex of the falling wedge and is the technical origin of the downtrend in this wedge. Reaching this point would effectively complete the recovery from the bearish wave.

These targets represent realistic bullish objectives that traders can capitalize on in the short term, provided the market holds above the recent breakout zone and avoids slipping back below the wedge.

At the time of writing, Dogecoin is trading around $0.1560, still slightly above the $0.155 support zone highlighted. The meme coin has decreased by 0.34% in the past 24 hours. Still, there is a possibility of a bounce back to $0.17 before the end of the week.