The ongoing Dogecoin price crash that has seen it plunge by over 67% from its highest point in November last year could be about to end, a top crypto trader said. The trader noted that DOGE had formed a rare chart pattern that often leads to substantial gains over time.
Crypto Trader Hints at an Impending Dogecoin Price Rally
DOGE price remains in a strong downtrend, mirroring the performance of most altcoins that have dropped by double digits this year.
However, an anonymous trader known as Cobbers has predicted that the coin was about to be “set free” and surge. He cited a rare chart pattern that has formed on the daily chart that may trigger this surge.
The pattern he pointed to is known as the falling wedge. This pattern comprises of two down-trending and converging trendlines. In DOGE’s case, the upper line connects the higher lows since December last year. The lower lines links the lower lows since November.
These two lines are about to converge, which is when a bullish breakout typically happens. In this case, a bullish breakout would have the Dogecoin price jump to the key resistance level at $0.2350.
This target is the 61.8% Fibonacci Retracement level. It is also achieved by measuring the distance of the widest part of the wedge, and then measuring the same distance from the breakout point.
As shown below, Cobbers believes that the coin has room to jump to its highest point in 2024, which would imply a 210% surge from the current level.
DOGE Price Forms a Double-Bottom
Dogecoin price has also formed another rare chart pattern that could signal more gains ahead. It has formed a double-bottom pattern on the eight-hour chart. This part has two down peaks and a neckline, and it often leads to a rebound.
In this case, the lower side of the double bottom was at $0.1435, while the neckline is at $0.2070, its highest level on March 26. In most cases, this pattern often leads to more upside as it signals a bottom. It also shows that short sellers are unwilling to place trades below that level.
The bullish view is supported by the fact that oscillators like the Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) have all pointed upwards.
Potential Drivers For DOGE Surge
The value of DOGE has numerous drivers that may push its price higher in the longer term. One of these catalysts is that 21Shares applied for a spot DOGE ETF, joining firms like Bitwise and Grayscale. Odds of that approval are high because it is a proof-of-work cryptocurrency that the SEC does not consider a security.
Also, Dogecoin could benefit if Bitcoin price recovers and surges to $200k as some analysts predict. History shows that BTC and DOGE have some correlation.
Further, Dogecoin price would surge if the Federal Reserve cuts interest rates as analysts predict because of the ongoing trade war.
The post “DOGE to be Set Free!” – Dogecoin Price to Soar as Top Trader Spots Rare Pattern appeared first on CoinGape.
