Dogecoin’s Double Bottom Pattern Points to $0.418 Surge

Key Insights:

• Dogecoin’s double bottom pattern points to a potential price surge toward $0.418.
• Hidden bullish divergence on Dogecoin’s daily chart signals possible upward momentum.
• The recent breakout above the resistance trendline creates fresh trading opportunities for DOGE.

Dogecoin (DOGE) has been gaining attention after a key technical pattern emerged, signaling the potential for a price surge. The lower wick during the week suggests that this neckline was tested, further confirming the validity of the pattern. 

According to market analysis from TATrader_Alan, the cryptocurrency recently closed above the double bottom neckline on its weekly chart. This setup points to a potential target price of $0.418, marking a significant rally for DOGE. Dogecoin’s weekly chart shows a double bottom pattern, a bullish signal that indicates a possible price breakout.

The chart suggests that the cryptocurrency is ready to continue its upward movement. As the lower wick tested the neckline, it further confirmed the pattern’s strength. If Dogecoin continues to see momentum, it could break through the $0.418 resistance, allowing the coin to achieve higher price levels.

Dogecoin’s Daily Chart Shows Bullish Divergence

In addition to the TATrader weekly chart’s double bottom pattern, DOGE’s daily chart also presents promising signs. The cryptocurrency has found support along a descending trendline, instead of the expected horizontal support zone. 

Notably, Dogecoin’s new hidden bullish divergence has been confirmed, indicating a positive price movement ahead. With no bearish divergence observed, the potential for continued upward movement remains intact.

The relative strength index (RSI) has exited the overbought zone, which often signals the start of a new uptrend. This shift in momentum could help drive DOGE’s price higher, supporting the overall positive sentiment around the asset.

Short-Term Trading Opportunities and Price Prediction

In the short term, Dogecoin’s recent breakout above a resistance trendline has created fresh trading opportunities. DOGE has established a new higher high on the 1-hour chart, which typically signals the start of a bullish trend. 

Furthermore, traders who are looking to capitalize on this momentum may find success by taking long positions. To manage risk, stop-losses should be placed below the breakout point. For those less risk-tolerant, waiting for a retest of the broken resistance level as new support could provide a safer entry point.As of press time, Dogecoin is trading at $0.2481, with a 24-hour trading volume of over $2.4 billion. The cryptocurrency has experienced a slight gain of 2.05% in the last 24 hours, suggesting a level of market confidence.