Dogecoin (DOGE) Forms Bullish Pattern,18% Rally Incoming?

The cryptocurrency market is experiencing a mix of sentiments with significant price fluctuations. In the midst of this uncertainty, Dogecoin (DOGE), the popular meme coin, has shown a bullish price action pattern that suggests a potential for significant upward movement.

Technical analysis experts have identified a bullish inverted head and shoulder pattern on the four-hour chart of DOGE. The pattern has a neckline at the $0.178 level. If the coin manages to break above this level and close a four-hour candle above $0.18, there is a strong possibility that it could surge by 18% to reach $0.212 in the coming days. This $0.21 level also acts as a horizontal resistance level and is supported by the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend in the overall market.

Despite the bullish signals on the chart, traders seem to have a bearish outlook on DOGE, according to data from the on-chain analytics firm, Coinglass. Traders are currently over-leveraged at $0.168 and $0.1755 levels. Long positions worth $12.70 million have been built at the $0.168 level, while short positions totaling $19 million are held at the $0.1755 level. This data suggests that intraday traders hold a bearish view on Dogecoin.

At the time of writing, DOGE is trading around $0.173, with a 1.50% increase in price over the past 24 hours. However, trading volume has increased by 16%, indicating lower participation from traders and investors compared to the previous day.

Overall, Dogecoin’s technical analysis points to a potential bullish breakout, but traders’ sentiment remains bearish. It will be interesting to see how the price action unfolds in the coming days and whether DOGE can defy the odds and surge to new highs.