Dogecoin has been showing some optimistic and bullish patterns recently. The price is currently up by more than 20% today, and the price pattern suggests that this could be only the beginning of what might be a major rally.
Dima James Potts posted an analysis to his followers on X, where he identified a classic chart pattern for Dogecoin. According to him, the pattern presents an optimistic outlook for the DOGE meme coin.
His detailed examination of the weekly DOGE/USD chart indicates that Dogecoin may very well surge beyond the $10 and $20 threshold in the current market cycle.
Potts emphasized his preferred trading setup: the Inverse Head and Shoulders pattern. He noted that historically, Dogecoin has reliably formed this pattern before initiating significant rallies.
He recalled that in previous cycles, the price of Dogecoin exploded after breaking through a key weekly resistance level, represented by the yellow neckline on the chart.
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Dogecoin Price Analysis as Presented by Potts
The first cycle saw an astonishing price increase of over 3,364%, while the second cycle achieved a remarkable gain of 12,189%.
The analyst believes Dogecoin is currently on the verge of closing the week above this crucial resistance, indicating the potential for another parabolic ascent
The chart reveals that Dogecoin’s price is moving within a rising channel, signifying a long-term bullish trend.
As the price fluctuates between two parallel lines, it suggests that as long as Dogecoin remains within this channel, upward momentum is likely to continue. This configuration reinforces the possibility of an extended rally.
Potts indicated multiple rounded bottom formations on the chart, which signal phases of accumulation prior to each price surge. Each rounded bottom denotes a period where buyers gradually seize control, positioning Dogecoin favorably for the next upward movement.
An arrow on the chart points to an imminent breakout above the upper boundary of the ascending channel. A successful break above this boundary would mark a shift in momentum, potentially leading Dogecoin to reach unprecedented highs.
Potts’s concluded that his chart analysis indicates that Dogecoin is poised for a potentially historic rally, underpinned by established patterns and crucial resistance breaks. If history is any guide, as Potts suggests, DOGE could indeed be on a trajectory “To the Moon.”
