- Dogecoin exits a 5-wave descending wedge, confirming a bullish breakout that mirrors the Q3 2024 structure before a major surge.
- The Stochastic RSI has crossed out of oversold territory, signaling increasing buying pressure and strengthening short-term bullish momentum.
- Dogecoin surges more than 25% in seven days as trading volume spikes $11.2 billion, reitating bear-to-huss breaks- driven-bullish sentiment.
Dogecoin (DOGE) has broken above a significant chart pattern, initiating a new bullish impulse on the higher timeframe. This technical move suggests potential for a further upside continuation.
Breakout from Descending Broadening Wedge
Dogecoin has broken out of a 5-wave descending broadening wedge on the 2-week chart, a pattern that typically indicates the end of a decline and the start of an uptrend. The latest breakout closed above the top wedge boundary definitive to break out below, which could indicate a future trend change.
Trader Tardigrade highlighted this development on X, noting the similarity between this breakout and the one seen in Q3 2024. That previous move led to a notable rally. The 5-wave structure, labeled I–V, aligns with Elliott Wave theory. Wave V typically marks the final stage of bearish correction before an upward trend begins.
With this pattern now completed, the breakout may represent the start of a new bullish impulse. Price projections suggest DOGE could target the $0.36 to $0.42 range if momentum builds.
Stochastic RSI Moves Out of Oversold Zone
In addition to the breakout pattern, momentum indicators are shifting in DOGE’s favor. The Stochastic RSI has crossed upward from the oversold territory on the 2-week chart. This crossover, marked by a green arrow, indicates growing buying pressure.
Historically, similar stochastic crossovers have preceded strong upward price moves. A comparable setup occurred in late 2024 and was followed by a sharp price increase. This suggests current momentum is aligned with technical strength, reinforcing the bullish breakout thesis.
Market Reaction and Price Action
At the time of writing, Dogecoin is worth $0.2518. This coin has gained 3.72% in the last 24 hours. Dogecoin, in the last 7 days, showed a 25.24% gain, signifying increased interest in trading Dogecoin with the recent upswing in price. The 24-hour trading volume is $11.26 billion—representing additional interest in trading Dogecoin.
If this recent breakout attracts sidelined traders as sentiment shifts, DOGE could see additional momentum and enter a continuation phase.
