Cryptocurrency analyst Trader Tardigrade has Highlight an interesting development In the price movement of Dogecoin, trading begins within a certain range. According to the technical analysis conducted by a cryptocurrency analyst, Dogecoin is currently in the manipulation phase. Interestingly, he noted that the meme king has been following a Power of Three (PO3) pattern for the past several weeks, indicating a bullish wave on the horizon.
Dogecoin alignment with the power of 3 patterns
The Power Of 3 pattern is an interesting price pattern in technical analysis that always ends with a strong upward movement. This pattern identifies three critical stages: Accumulation, manipulation and distribution, which collectively define market cycles.
In the case of Dogecoin, it has remained the leading cryptocurrency On a downward trend path Since the second week of December, with noticeable corrections Which results in a break below Threshold of $0.30. As Trader Tardigrade pointed out, this decline is part of a Strength 3 pattern, This means that it is very important Prices rise from here.
According to Trader Tardigrade, using the daily candlestick time frame chart, Dogecoin’s accumulation phase lasted from early November to mid-December after the crazy rally that lasted from October to November. During this accumulation period, Dogecoin price consolidated within a narrow range, indicating weak activity but high buying interest even as some holders took profits.
#Dogecoin It seems to be in line with the Power of Three (PO3) pattern 🔥$doji It recently moved from the long consolidation process in the accumulation phase, which lasted from early November to mid-December, to the manipulation phase. It is expected that the distribution phase will begin… pic.twitter.com/qvEYCQbUly
— Slow Growth Trader (@TATrader_Alan) December 24, 2024
However, the recent price action in the past two weeks has seen the price of Dogecoin enter the manipulation phase. This phase was marked by a sharp downward movement due to increased volatility, especially on December 20, which saw the price of Dogecoin briefly fall to $0.267. However, this phase can be a precursor to the final and most explosive phase of the pattern (the distribution phase).
Distribution phase to send Dogecoin price to all-time highs
The Power 3 pattern peaks in the distribution phase, which is characterized by strong upward momentum. In the case of Dogecoin, trader Tardigrade predicted that this phase would push its price to all-time highs above its current price of $0.7316. In particular, the analyst charted a price action that would see Dogecoin reach $0.95 in the distribution phase.
At the time of writing, Dogecoin is trading at $0.332, having rebounded by about 3.5% over the past 24 hours. Reaching the $0.95 target would mean an increase of about 186% from the current price. Regarding the timetable, the analyst specified the first two weeks of 2025 Like the possible period Until this upward movement is achieved.
this The prediction is consistent with The broader market forecast for Dogecoin, with many investors and analysts We expect a break above $1. While the $0.95 target stops short of this milestone, it serves as a compelling indicator of continued bullish sentiment regarding Dogecoin.
Featured image created with Dall.E, chart from Tradingview.com
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