Dogecoin (DOGE) Holders Warned to "Be Careful" as a Potential Bullish Pattern Forms

A notable TradingView analyst has warned Dogecoin (DOGE) holders, particularly the bears, to “be careful” as a potential bullish pattern forms.

Notable TradingView analyst warns 'be careful' to Dogecoin holders, especially the bears, as bullish pattern forms.

Dogecoin (DOGE) price has seen a substantial drop over the past week, reflecting broader market concerns. The memecoin saw a 6.7% decline from a weekly high of around $0.20 to a low approaching $0.16.

In a 24-hour period, the price further decreased by 4.0%, while the 30-day change stands at a more substantial 20% drop.

However, despite this decline, analysts are exploring potential signals for a market reversal, citing technical patterns that could indicate a future price surge.

One analyst identifies cup and handle, another sees AB=CD harmonic

Among the technical patterns being identified is the cup and handle formation, which was spotted by analyst “Cobra Vanguard” on TradingView. The chart shows a large, rounded bottom structure, which began in mid-2021 following DOGE’s peak.

This rounded shape suggests long-term accumulation and a market recovery after a significant drop. Notably, the cup bottom was around $0.04 in mid-2022.

Meanwhile, the price has since moved to as high as $0.47 in December 2024 before pulling back to form the handle. Currently, the handle is showing signs of consolidation ahead of an uptick.

Additionally, the AB=CD harmonic pattern, another crucial technical element, mirrors the previous price rise, suggesting a potential target price of $0.88.

Essentially, the analyst is urging market participants to not be overly bearish about DOGE amid the current dip, as the price action could quickly reverse, potentially catching short-sellers off guard.

Another analysis, from Ali Martinez, focuses on Dogecoin’s price movement within a long-term ascending channel. The channel is composed of three trendlines that denote the lower, mid, and upper boundaries.

As highlighted, DOGE’s price has historically shown respect for the lower trendline, bouncing off this dynamic support to propel further price gains. Currently, Dogecoin is testing this lower boundary, signaling a potential upward reversal.

If this support level holds, the price could be poised to continue its ascent. According to Martinez’s analysis, the Fibonacci retracement levels offer a bullish target as high as $7.

Analyst names key levels for sustained Dogecoin recovery

In a recent analysis, ‘readCrypto’ identified crucial price levels that Dogecoin must reclaim to sustain any recovery. A short-term chart of Dogecoin (Credit: readCrypto/TradingView)

According to the analyst, the first critical level is $0.1895, a resistance point earlier this month. After dropping below this level on March 9, DOGE recovered but has since been unable to break through it completely.

“We're testing the $0.1895 resistance one last time. This level held on March 9th before the sellers returned. It was tested again on March 12th and 15th but buyers returned both times.”

A decisive move above this level would be essential for a sustained recovery, setting the stage for a continuation of the bullish trend.

The analyst further highlighted the importance of reclaiming the 50-period moving average (MA) on the 4-hour chart, currently standing at $0.1950.

This technical indicator plays a role in identifying trends and potential reversals in an asset’s price. A sustained move above the 50-period MA could indicate a shift in momentum.

Finally, the analyst noted the significance of the 200-period MA on the 4-hour chart, currently at $0.1765. This long-term indicator is often used by traders to identify long-term trends.

A sustained move above the 200-period MA would be a bullish signal, indicating that the bears have lost strength, paving the way for a more sustained bullish run.