Dogecoin Recovery Drawing Close? A Bullish Breakout From Descending Chart Patterns Imminent

Dogecoin alongside other major digital assets has lost its recent upward momentum as the general crypto market experiences a notable drawback. With the market facing bearish pressure, DOGE seems like it could undergo more decline. However, analysts believe that the meme coin is likely to rebound soon targeting new yearly highs.

Upward Momentum Building For Dogecoin

Recent developments hint at a resurgence of upward momentum for Dogecoin in light of heightened bearish pressure. Technical analysis platform Rose Premium Signals has identified bullish indicators on the DOGE’s chart in the 1-day time frame.

In the analysis shared on the X platform, Rose Premium Signals foresees an impending price recovery, bringing the meme coin back to key resistance levels. A price recovery during this volatile period reflects Dogecoin’s strong resilience and capability in a bearish market outlook.

Looking at the 1-day chart, Dogecoin has formed a second Falling Wedge formation. The falling wedge chart formation is a bullish technical pattern characterized by two sloping trend lines that emerge after a downward trend in a crypto’s price action, which suggests growing momentum.

Rose Premium Signals highlighted that Dogecoin is rising from the lower edge or the falling wedge formation. With the meme coin bouncing from the lower edge, it is showing signs of a possible rebound that may trigger a notable price upswing to higher highs as the market sentiment stabilizes.

Once DOGE breaks out from the descending resistance, the development could push its price toward targets such as $0.230, $0.287, $0.340, and $0.445 in the upcoming weeks. However, before Dogecoin undergoes the anticipated breakout, it is likely to drop to the $0.16896 price mark.

An Ideal Time To Purchase DOGE In This Cycle

While DOGE has crashed significantly, the decline may be an opportunity to purchase the meme coin as key indications turn green. Ali Martinez, a technical expert and trader has predicted an upcoming rebound as he highlights that the ongoing dip may be the right time to buy DOGE.

In the 1-hour time frame, the TD Sequential indicator has presented a buy signal in the midst of rising volatility. As a result, Martinez is confident that DOGE might be poised for a recovery in the short term. 

Presently, large investors are persistently accumulating the meme coin in anticipation of a major rally in the ongoing market cycle. Martinez reported a notable number of DOGE, particularly 140 million, acquired by whales in a single day. This behavior by large investors shows renewed interest and confidence in DOGE among these whales.

At the time of writing, Dogecoin was trading at $0.18, demonstrating a more than 17% decline in the last 24 hours. Over the past day, its trading volume and market cap have also decreased by over 20% and 17% respectively. With waning market sentiment growing, DOGE could face challenges in sustaining an upward move.