Dogecoin, if it surpasses $0.1, a surge?...Expectations explode for recapturing May's high

▲ Dogecoin (DOGE)

While Dogecoin (DOGE) is stuck at the $0.10 defense line, the possibility of a descending wedge pattern breakout has been raised, reviving expectations for the next surge in the memecoin market.

According to crypto media outlet NewsBTC on May 28 (local time), Dogecoin has traded sideways between $0.100 and $0.105 for the past four days. Dogecoin recovered from its one-month low of $0.097 recorded last Saturday and remained in that range, making the defense of the key support level a central variable for short-term trends.

Market analyst Trader Tardigrade suggested the possibility of a bullish reversal for Dogecoin, based on a classic descending wedge pattern formed since early May on the daily chart. He described the descending wedge pattern as “one of the most reliable bullish reversal patterns,” explaining that a breakout “almost always leads to explosive upward movement.”

Trader Tardigrade analyzed that Dogecoin has been compressed within this pattern for several weeks and is currently retesting the upper boundary near the apex of the pattern. He believes Dogecoin is ready for a breakout and could rebound to at least its May high. He also claimed that the structure seen before past explosive rises is repeating on the monthly chart, with similar base formations observed before the all-time high rallies in 2017 and 2021.

However, a short-term correction warning also emerged simultaneously. Market analyst Ali Martinez stated that Dogecoin has been trading within a parallel channel between $0.088 and $0.115 for the past three months and appears ready for a deeper price correction. Recently, Dogecoin failed to break through the upper resistance of the channel and retreated to around $0.102, which was presented as a key support level coinciding with the 50-day Simple Moving Average.

Martinez warned that if this support level holds, a rebound towards the top of the channel can be expected, but if Dogecoin falls below this level, the likelihood of retesting the bottom of the channel increases. At the time of writing, Dogecoin was trading at $0.101, down 2.4% on a weekly basis.

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