Dogecoin (DOGE) Might Be Eyeing a Monumental 300% Increase If a Breakout Materializes

Dogecoin has been notably trending up after forming a diamond bottom reversal pattern.

Trader Tardigrade had pointed out, “Dogecoin's daily chart appears to be forming a “Diamond Bottom” Reversal Pattern, suggesting a potential shift for $Doge from a recent downtrend to an uptrend.”

A diamond bottom reversal pattern usually forms after a prolonged downtrend. It shows that there's a psychological shift from selling pressure to buying interest.

Dogecoin is already enjoying a 53.1% monthly increase to trade at $0.2492 when writing, showing that the eighth-largest cryptocurrency is already seeing bullish momentum.

The meme coin price had dropped to lows of around $0.15 in December 2022. But since then, it has been recovering, notching highs of $0.28 in mid-February.

The recovery in the apex meme coin had come amid a broader rally in the cryptocurrency markets. Bitcoin (BTC) had also shot up to yearly highs of over $28,000, while Ether (ETH) had climbed to the $2,000 zone.

This recovery in the crypto markets had come after a turbulent year in 2022, which saw the cryptocurrency markets crash to lows not seen since 2020.

The crypto market downturn, which began in the second half of 2021, saw Bitcoin drop to lows of around $16,000, a far cry from its all-time highs of nearly $70,000, which it had hit in November 2021.

Dogecoin Is Seeing Massive Institutional Inflows And Slow Retail Outflows

Meanwhile, DOGE has been seeing massive institutional inflows and slow retail outflows, which have contributed to its uptrend.

For instance, crypto whales recently made a weekly purchase of 100 million DOGE tokens, showcasing heightened market activity.