- Dogecoin forms rare Diamond Bottom, signaling a potential bullish reversal from recent downtrend.
- Technical support at $0.165–$0.17 remains crucial as analysts target a breakout toward $0.35.
- Rising holding time and whale accumulation suggest strong investor confidence ahead of ETF news.
Dogecoin’s daily chart appears to be forming a “Diamond Bottom” Reversal Pattern, suggesting a potential shift for $DOGE from a recent downtrend to an uptrend. This pattern, often observed during market transitions, is supported by technical signals and market data that indicate a possible breakout from consolidation.
Technical Analysts Spot Diamond Bottom Formation
According to analysis prepared by Trader Tardigrade, Dogecoin’s price structure on the daily chart is forming a rare diamond bottom pattern. This pattern typically suggests a bullish reversal after a prolonged downtrend. The breakout range is estimated between $0.165 and $0.17.
Trader Tardigrade also shared that if the breakout occurs, the price could rise by over 105%, targeting a move towards $0.35. On the same chart, a green arrow suggests a potential extension beyond this level. The Price Momentum Oscillator (PMO) has recorded a bullish crossover. This development, paired with increasing holding time from investors, may support further gains if the price holds above support levels.
Another analyst, Ali Charts, noted Dogecoin is testing support at $0.167. He stated, “Holding this level could spark a rebound toward $0.175 and potentially $0.183.” Both analysts emphasized that staying above $0.165 is essential for the bullish structure to stay valid.
Market Conditions and Investor Behavior Show Support
Dogecoin has shown price strength since rebounding from $0.14 earlier in April. It is now trading near $0.169. According to an observation by MasterAnanda, Dogecoin’s chart shows repeating patterns of previous cycles that preceded strong upward moves.
On-chain data from IntoTheBlock shows average holding time has increased by over 526% in the last 90 days. This suggests reduced short-term selling pressure and growing long-term investor interest.
Also, whale activity has increased, with over 100 million DOGE moved to a private wallet recently. Analysts estimate ETF approval could push DOGE prices between $0.34 and $0.50. This aligns with the upper breakout levels seen in current technical setups.
