Dogecoin has spent most of the last 30 euros days that float lower, falling into a tight and almost predictable rhythm of lower highs and lower lows. The the movement was slow, but technical analysis shows that something important is emerging now.
A new analysis shared by crypto commentator Clifton Fx suggests that Dogecoin is nearing the end of this decline, and the chart he posted highlights a falling wedge pattern that could become the basis for a 96% rally if buyers finally act with conviction.
A falling wedge that starts to attract attention
Technical analysis of Dogecoin’s price action on the 12-hour chart shows two downward trend lines gradually converging. This pattern is highlighted by spiraling price action, with each jump getting smaller and the space between the trend lines shrinking.
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This structure is often described by analysts as a falling wedge. It occurs during a downtrend, but the tighter it gets, the more it suggests sellers are losing control and buyers are quietly gaining ground.
Clifton Fx pointed this out exactly development in his positionnoting that Dogecoin is already pushing against the upper limit of the wedge. The chart he shared shows the price repeatedly trying to break out, something that is typically seen as early evidence that momentum is shifting.
As it stands now, the recent price action over the past 48 hours has led to the creation of multiple green 12-hour candles following Dogecoin. recovered from a low of $0.135. This has caused the Dogecoin price to approach the upper resistance trendline and outlook depends on what happens here.
According to the analyst, a strong breakout candle above the wedge would confirm that the pattern has been completed and that Dogecoin is ready for a sustained move to the upside.
The case for a 96% rally
The appeal of this technical setup is the potential size of the move if the breakout occurs. The wedge covers a wide vertical range, and in technical analysis the height of the pattern is a guide to estimating the rally after a breakout.
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Based on the structure visible on the chart, a successful breakout would open the door for a 96% upside from current levels. However, this does not guarantee that the move will take place immediately.
Dogecoin has been under pressure for weeks and a breakout without the right momentum could easily fail. A clean rise above the trendline, preferably one that arrives with increasing trading volumewould help confirm that buyers are taking over.
Everything slower or weaker Dogecoin price could bounce off the resistance trendline and drop to approach the lower support trendline, which is now around the mid-$0.13 level.
Featured image of Pngtree, chart from Tradingview.com