As Dogecoin (DOGE)\u2019s price attempts to hold a crucial support level, an analyst flagged potentially bullish technical setups that could set the stage for a major move in the coming months.<\/p>\n
On Wednesday, Dogecoin continued its sideways<\/a> trajectory between the $0.100-$0.105 local range. The cryptocurrency has been trading within this area for the past four days, after recovering from its one-month low of $0.097 recorded on Saturday.<\/p>\n Amid this performance, market observer Trader Tardigrade shared a bullish outlook for the cryptocurrency, analyzing DOGE\u2019s chart on multiple timeframes. He pointed out a \u201ctextbook\u201d falling wedge setup on the daily timeframe, which has been forming since early May.<\/p>\n The analyst asserted that this pattern is \u201cone of the most reliable bullish reversal patterns,\u201d with the breakouts<\/a> \u201calmost always lead[ing] to explosive upside.\u201d Dogecoin has been compressing inside this pattern for a couple of weeks, and it\u2019s currently sitting near its apex, while also retesting the formation\u2019s upper boundary.<\/p>\n Based on this, the analyst suggested that DOGE is \u201ccoiled and ready\u201d for a breakout and potential rally to at least the May highs. Trader Tardigrade also shared<\/a> the memecoin\u2019s monthly chart, affirming that \u201ca massive surge is coming.\u201d<\/p>\n He asserted that Dogecoin appears to be repeating a setup that has previously led to explosive performances. According to the chart, the cryptocurrency is forming a new solid base structure, suggesting that a breakout and rally toward new highs could begin in the coming months. Notably, this structure previously formed ahead of the 2017 and 2021 all-time high (ATH) rallies.<\/p>\n As the new multi-year base develops, the analyst stated<\/a> that DOGE is in \u201cthe best accumulation period, adding that \u201cevery single time DOGE entered an accumulation zone, it consolidated sideways before exploding into a parabolic rally.\u201d He asserted that this pattern has appeared in 2015-2017, 2019-2020, 2023-2024, and \u201calways leads to an explosion.\u201d<\/p>\n In an X post, market watcher Ali Martinez affirmed<\/a> that Dogecoin \u201clooks ready for a deeper price correction.\u201d As he noted, the cryptocurrency has been trading between $0.088 and $0.115 over the past three months, forming a parallel channel.<\/p>\n During the April-May market rally, the leading memecoin was able to climb from the channel\u2019s lower half toward its upper boundary, briefly breaking above this crucial resistance in mid-May before retracing.<\/p>\n Following the latest rejection, the cryptocurrency dropped<\/a> to the channel\u2019s mid-range around $0.102, falling below this level during last week\u2019s pullback. This area aligns with the 50-day Simple Moving Average (SMA), which has served as a key support during the recent market recovery.<\/p>\nDOGE\u2019s Short-Term Fate On The Line<\/h2>\n