A developing Three Bullish Drives pattern has just been identified on the Dogecoin price chart. According to the analyst’s report, this new technical pattern suggests the meme coin could be on the verge of a bottom, potentially marking its next key buying point for market watchers. This projected decline could extend the downtrend Dogecoin experienced over the past few months, which already wiped out most of the gains made earlier this year during the meme coin hype.
Dogecoin Bullish Reversal Setup Reveal Buying Point
Crypto analyst Trader Tardigrade has stated that Dogecoin may be close to forming a bottom on the daily chart, as it develops what appears to be a classic Bullish Three Drives pattern. He points out that the first 1.272 Fibonacci extension near $0.137, measured from Point 1 to Point 2, lines up with the descending resistance line formed by Points A and B. This alignment is significant, as it suggests that Point 3 may represent the next buying opportunity, potentially marking Dogecoin’s lowest level before a reversal.
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Trader Tardigrade’s chart shows the full Three Bullish Drives pattern taking shape, with three apparent dips labeled Points 1, 2, and 3. Each downward move follows the same harmonic rhythm seen in the sample pattern shown in the chart’s inset. Points A and B, between $0.159 and $0.155, form lower highs, creating a strong resistance line that the Dogecoin price continues to respect throughout the pattern.
The repeated appearance of the 1.272 Fibonacci extension reinforces the setup, showing that the market is following the expected price behavior of this chart formation. Point 3, which sits between $0.131 and $0.124, stands out as a major turning point for investors. What this means is that Trader Tardigrade expects Dogecoin to temporarily decline to this lower buy point before moving back upwards.
The momentum from DOGE’s projected rebound is expected to push its price toward $0.155. Although the analysis initially forecast that Dogecoin would hit a bottom, it also suggests that the recent downtrend, which has seen the meme coin’s price crash by roughly 20% this month, may be approaching its end.
Falling Wedge Signals Strong Upside For DOGE
A market expert identified as ‘Crypto King’ on X suggests that Dogecoin has strong bullish potential, as a clean Falling Wedge pattern is forming on the daily chart. He highlighted that the DOGE price is currently compressing against the trendline, signaling that the market may be gearing up for a significant move.
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According to Crypto King, once the market structure is broken and the diagonal resistance is reclaimed, a rapid surge toward $0.27 could unfold for Dogecoin. At its current price of $0.14, this would represent a staggering 92.86% gain.
Featured image from Getty Images, chart from Tradingview.com