Dogecoin (DOGE) has surged following a decisive breakout from a 5-wave descending wedge pattern, signaling a potential bullish rally toward $0.42.
The Stochastic RSI indicator confirms strengthening momentum as it exits oversold territory, supporting the likelihood of sustained upward price movement.
According to COINOTAG analysis, DOGE’s recent 25% weekly gain alongside a spike in trading volume to $11.2 billion underscores renewed investor confidence and market activity.
Dogecoin breaks out of a key technical pattern with bullish momentum from Stochastic RSI, driving a 25% weekly surge and signaling a potential rally to $0.42.
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Dogecoin has successfully broken above a 5-wave descending broadening wedge on the biweekly chart, a pattern often associated with the end of bearish corrections and the onset of new uptrends. This breakout is significant as it mirrors a similar structure observed in Q3 2024, which preceded a strong price rally. The wedge’s upper boundary was decisively breached, confirming a shift in market sentiment from bearish to bullish. This technical development aligns with Elliott Wave theory, where the completion of wave V typically marks the conclusion of downward pressure and the beginning of upward momentum.
Complementing the breakout, the Stochastic RSI indicator has moved out of oversold territory on the 2-week timeframe, signaling a rise in buying interest. This momentum indicator’s bullish crossover historically precedes significant price advances, reinforcing the breakout’s validity. The current setup is reminiscent of late 2024 when a similar Stochastic RSI movement led to a notable price surge. This convergence of technical signals suggests that Dogecoin’s price action is supported by robust underlying momentum, enhancing the probability of a sustained rally.
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Source: https://en.coinotag.com/dogecoin-breaks-out-of-descending-wedge-as-stochastic-rsi-signals-potential-rally-toward-0-42/