Dogecoin is demonstrating upward performance as bullish sentiment returns to the market, causing the dog-themed meme coin to rise above the $0.17 price level. With DOGE regaining traction, a crypto analyst points to a potential price reversal, predicting a notable upsurge in the upcoming weeks.
Bullish Chart Pattern To Bolster Dogecoin’s Recovery
Following a prolonged period of bearish performance, recent developments are pointing to a bullish outlook for Dogecoin. Market analyst and investor Trader Tardigrade believes that DOGE is poised for a rally, suggesting the end of the ongoing downward pressure.
Trader Tardigrade made the forecast as DOGE forms a key chart pattern, which is capable of preceding major price upswings. With the meme coin edging toward a bullish path, prices have likely bottomed out, setting the stage for a notable breakout.
Examining DOGE’s price action, Trader Tardigrade highlighted that an Ascending Triangle pattern has emerged in the 4-hour time frame, with high lows formation. An ascending triangle formation is a technical chart pattern that suggests a bullish continuation, represented by a horizontal resistance line and a rising support line.
The emergence of the key chart pattern indicates a possible upward breakout and extension of Dogecoin’s current uptrend. As a result, the expert is confident that an uptrend reversal could be on the horizon as DOGE builds up momentum for a significant breakout.
In the event that DOGE undergoes a bullish breakout, Trader Tardigrade foresees a rebound to the $0.20 level. However, the meme coin is expected to witness another brief pullback before surging to the aforementioned level.
Dogecoin’s potential for a price reversal is also reflected by its latest weekly close with a candlestick that is frequently linked to a recovery. Trader Tardigrade revealed in another X post that DOGE ended last week with a Doji Candle, signaling renewed upward strength.
With the Doji candlestick reappearing, the meme coin’s likelihood of seeing an upswing has risen due to what happened the last time the development unfolded. A close look at the chart shows that the ongoing drop may have come to an end as observed in the previous scenario. “This indicates a potential reversal from a downtrend to an uptrend at this level,” the expert stated.
DOGE Wallets Addresses Spike
DOGE’s downtrend has not hindered investors’ sentiment. Market intelligence and on-chain platform Santiment has reported a surge in DOGE wallet addresses during the 2-month crypto retrace. Since the beginning of February, wallets holding at least 1 million DOGE have grown by 62, a 1.24% increase.
There has also been a significant growth in Dogecoin active addresses. Santiment’s data shows a daily record of over 150,000 DOGE active addresses, marking its highest since mid-November last year. Since accumulation often influences price movements, Santiment has urged investors to keep an eye on the increase in wallets containing 1 million DOGE and above.
Featured image from Unsplash, chart from Tradingview.com
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