Dogecoin (DOGE) Has Made Its First False Break Since December 2024

output:input: Dogecoin has made its first false break since December 2024, as it witnesses a rebound above the support line, suggesting a potential bull run.

Dogecoin (CRYPTO: DOGE) has faced difficulties recently, trading at around $0.1539 on Saturday after a 4.13% drop in the past 24 hours. However, analysts are presenting views on what could come next for the memecoin.

What Happened: Major technical patterns suggest that the downward momentum in the cryptocurrency could soon reverse.

One pattern that analysts are following is the “False Break” observed in Dogecoin’s daily chart. According to Trader Tardigrade, the price has been following a consistent downtrend since December 2024.

“This is the first time in 2024 that Dogecoin has made a False Break. It’s staying above the support line for days, confirming the characteristics of a false break. A new $DOGE bull run could start from this false break.”

The downtrend is marked by a series of lower highs and lower lows, confirming the bearish market sentiment. Interestingly, throughout the year, Dogecoin has seen three major breakdowns to lower levels amid the downturn. The first breakdown occurred on Feb. 2, while the second materialized on Feb. 21. Further, DOGE saw a third breakdown on March 8.

However, the bears attempted another breakdown on April 7 by pushing prices to $0.13 lows, but DOGE recovered quickly. This introduced a shift with a key “False Break.” This pattern occurs when the price falls below a critical support level but quickly rebounds, indicating that the downward movement was not sustainable.

Unlike previous breakdowns where the price continued to decline, the April decline failed to maintain its momentum. Trader Tardigrade notes that Dogecoin has remained above the support line for several days, confirming the characteristics of a false break. According to him, this pattern could signal the potential for a bullish reversal, eyeing the next target at $0.42, which marks a possible 172.90% increase from the current level.

Another notable technical pattern is the Symmetrical Triangle, highlighted by Trader Tardigrade in a separate analysis. According to his chart, the price has been contained within the triangle, frequently bouncing between the upper resistance and lower support trendlines. Each time DOGE approaches the upper resistance, it faces rejection and retraces to the support.

Conversely, when it hits the support, buying interest pushes the price higher. In the most recent part of the chart, the price has hit the lower boundary of the triangle and is expected to rebound toward the resistance.

Although the analyst did not specify a target price in case of a breakout, he suggests that the longer the consolidation, the stronger the expected pump.

Dogecoin Price Action: According to Benzinga's price data, DOGE is down 4.13% over the past 24 hours at press time.

Related Reading: How Dogecoin (CRYPTO:DOGE) Could Reach $1 In 2024

The TradingView account ‘FuaCompany’ presents a bullish outlook based on a rising channel, which is a pattern that occurs when the price moves within parallel lines, forming higher highs and higher lows.

This pattern, identified on a monthly DOGE chart, suggests that the memecoin could continue to respect the rising channel, with potential bounces at the lower boundary leading to upward movements.

Historical data indicates that when the price last hit the lower boundary around $0.05, it surged towards the upper limit. However, a bearish correction could also occur, causing the price to dip below the channel to around $0.08 before recovering.

Despite the potential for short-term declines, the long-term target for Dogecoin remains around $0.70, nearly reaching its 2021 all-time high.