Key Insights

• Dogecoin price confirms bullish breakout with $0.17 support retest.
• Double inverse head and shoulders pattern targets $0.34.
• Positive funding rates signal growing trader confidence.

Dogecoin price is currently exhibiting signs of a bullish reversal after breaking out from a significant technical pattern. Analysts are seeing multiple indicators that suggest a strong upward movement lies ahead, with the price now retesting a crucial support level around $0.17.

Double Inverse Head and Shoulders Pattern Suggests Bullish Reversal

Market analysts, including Bitcoinsensus, have noted the formation of a classic double inverse head and shoulders pattern on Dogecoin’s daily chart. This pattern is widely recognized as one of the strongest reversal signals available for traders. The breakout above the initial neckline has already been confirmed, signaling the start of potential bullish momentum.

Dogecoin recently pulled back to retest the breakout zone near $0.17. This support level is critical for validating the pattern. If DOGE manages to hold this support, the measured move from this formation suggests a price target of approximately $0.34—a potential 100% gain from its current point. This projection is supported by several factors, including price structure, breakout momentum, and market psychology. A successful bounce from the $0.17 support zone could ignite a robust upward surge, especially if the sentiment surrounding meme coins reignites.

Ascending Broadening Wedge Indicates Strong Upside Potential

Additionally, TATrader_Alan highlights another chart formation—a major Ascending Broadening Wedge pattern visible on the weekly chart. This pattern showcases price swings that are gradually expanding, indicating that bullish momentum is likely to follow once confirmed.

The Ascending Broadening Wedge features labeled points A, B, C, D, E, and F, demonstrating the growing swings in price. Confirmation occurs when price action breaks above point E, which could prompt DOGE to reach a target price of $3.80 in the long term. This pattern often indicates that trading activity and market direction are gearing up for a more substantial price rise. As Dogecoin approaches the breakout point, traders may prepare to capitalize on potential gains.

Positive Funding Rates Support Bullish Market Sentiment

The funding rate for Dogecoin presents another compelling reason to have a bullish outlook. Currently, the majority of futures contracts are long positions, resulting in positive funding rates. Long position holders are paying more, indicating their confidence in an impending price increase.

This positive funding rate contributes to price stability, bolstering confidence in the market. When sentiment aligns with price movements, it often leads to increased buying activity, solidifying a bullish trend. As long as these favorable conditions persist, Dogecoin’s price appears poised for further elevation.

Dogecoin Price Technical Indicators and Making Predictions

Examining the daily chart, it’s apparent that DOGE has recently broken out of a falling wedge—a formation that typically heralds higher prices. Although it initially targeted $0.40, the price has since experienced a pullback.

The Relative Strength Index (RSI) currently registers at 40.76, suggesting that while momentum is decreasing, it still remains above the oversold threshold. This positioning allows for potential upward reversals.

The Moving Average Convergence Divergence (MACD) indicator indicates a short-term bearish trend, as the MACD line is nearing a downward crossover below the signal line. Despite these indications, forecasts suggest that Dogecoin’s price may rise by 17.42% over the next five years, potentially hitting $0.2318 by June 28, 2025. However, the technical indicators indicate a degree of bearish sentiment, with the Fear & Greed Index sitting at zero.

Over the past month, Dogecoin has experienced 16 green days out of 30, accompanied by a price volatility of 11.53%. This data reflects a moderate level of stability with prospects for upward movement.