- DOGE shows a classic 5-wave descending broadening wedge pattern.
- RSI divergence and oversold on-chain signals point to bullish reversal.
- Breakout targets range from $0.25 to $0.48 if momentum holds.
Dogecoin is showing a well-recognized chart formation—a 5-wave descending broadening wedge. This pattern, commonly seen before price reversals, forms as lower highs and lower lows expand over time. Currently, DOGE’s chart has completed all five waves within the wedge structure.
This setup often signals a trend change, especially when paired with momentum indicators. In DOGE’s case, a strong RSI divergence confirms growing buying pressure even as price dips, indicating potential reversal strength.
Oversold Conditions Boost Breakout Potential
Alongside the pattern, technical indicators are flashing oversold signals. The Relative Strength Index (RSI) has remained below 30, a zone that historically precedes upward price movement. On-chain data also shows increased accumulation, especially from larger wallet holders—commonly referred to as “whales.”
These whales are likely positioning early ahead of expected market catalysts like possible crypto ETF announcements. As more investors notice the wedge breakout forming, trading volume is likely to surge, fueling momentum.
What Happens If DOGE Breaks Out?
If Dogecoin breaks the upper trendline of the wedge—currently around the $0.21 level—a bullish breakout becomes more likely. Based on technical analysis:
- First target: $0.25 – from the height of the wedge structure.
- Second target: $0.33 – tied to historical resistance levels.
- High target: $0.48 – projected from weekly resistance break.
However, if DOGE fails to break out and dips below $0.18, the bullish case weakens and support zones may be retested.
Smart Trade Strategy
- Buy zone: Near wedge breakout point around $0.21, or on pullbacks to $0.19–$0.20.
- Stop loss: Below $0.18 to protect against fakeouts.
- Profit zone: Scale out between $0.25–$0.33, with extended targets toward $0.48 if breakout gains momentum.
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