Dogecoin (DOGE), the largest meme coin in the market, is showing signs of a potential trend reversal following the emergence of a textbook Wyckoff Accumulation pattern. A crypto analyst has provided insights into this new pattern by sharing a detailed analysis of Dogecoin’s price action via its chart, hinting that the meme coin could be preparing for a bullish breakout soon.
Wyckoff Setup Unfolds On Dogecoin Price Chart
A recent technical analysis shared by Trader Tardigrade on X (formerly Twitter) reveals that Dogecoin appears to be completing a Wyckoff Accumulation schematic. This distinctive pattern is a chart formation that indicates the accumulation phase of an asset. It is typically used to identify potential buying opportunities and price breakouts for a cryptocurrency.
The Wyckoff Accumulation pattern is divided into five key phases from A-E, and DOGE has seemingly progressed through most of them. According to Trader Tardigrade’s Dogecoin chart analysis, in Phase A, the meme coin had undergone a Selling Climax (SC) followed by an Automatic Rally (AR) and Secondary Test (ST), which collectively established a fundamental support zone.
Phase B introduced a broad trading range for DOGE, with its price action displaying slightly higher upward movement compared to traditional Wyckoff chart patterns. Despite this, the meme coin continued to maintain key structural elements.
Moving forward, Phase C of Dogecoin’s Wyckoff Accumulation chart pattern featured a sharp yet deceptive dip known as the “Spring.” This move was intended to shake out weak hands from the market, setting the stage for a potential price reversal. A successful Test followed shortly after Phase C, validating the possible start of Dogecoin’s new bullish phase.
Based on Trader Tardigrade’s chart, Dogecoin has successfully completed the above phases and is now in Phase D. Currently, the meme coin is forming higher lows and testing resistance levels near $0.178, a zone that previously acted as support during Phase A.
Following Phase D, Trader Tardigrade indicates that the next step is a transition into Phase E, which is typically marked by a Sign of Strength (SOS) rally. This rally is expected to signal the end of the Wyckoff Accumulation, potentially driving Dogecoin’s price uptrend while transitioning into a Wyckoff Distribution schematic.
What’s Next For DOGE?
Trader Tardigrade revealed in his Dogecoin chart analysis that the Wyckoff Accumulation isn’t a perfect replica of standard patterns, especially in Phase B, where price action was slightly more bullish than expected. Nevertheless, the analyst has confirmed that a breakout could be imminent if DOGE can rise above the $0.178 resistance, signaling a significant shift into a bullish phase.
Currently trading at $0.146, the Dogecoin price is predicted to experience an explosive SOS rally of 50% to reach $0.21. Phase D of its Wyckoff Accumulation pattern is expected to fuel this price reversal, potentially pushing DOGE higher than the initial price target.
Featured image from Adobe Stock, chart from Tradingview.com
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