It looks like Dogecoin is finally here move past its extended reinforcement rate with the her feeling of greed returnedinto the crypto market. Interestingly, technical analysis of the Dogecoin price chart shows that this greedy sentiment is set to push the meme coin into a parabolic rally that would send it to new all-time highs.
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This rally is from a projection of the “Power of 3” concept, with recent price action pushing Dogecoin into the breakout phase.
The power of 3 patterns indicates Bullish momentum for Dogecoin
The Power of 3 pattern is a technical analysis concept that divides the price cycle into three distinct stages of accumulation, manipulation and distribution. These levels differ in their price performance. The rally level, which is the first level of the pattern, is marked by consolidation around a recent high after strong upward price action.
Next is the manipulation phase, where price action breaks below the rally level support and begins trading within a range just below this support. The circulation phase is the final phase, which is characterized by a strong price break in the upward direction as momentum builds and a large number of participants enter the market.
according to technical analysis of the Dogecoin price action by crypto trader Tardigrade analyst, two consecutive Power of 3 patterns have appeared on the DOGE daily chart. The first pattern is fully completed and played out in the months between March and November 2024, with the upcoming distribution phase pushing Dogecoin to multi-year highs.
The second pattern started shortly after the first ended and is now nearing its final stage. The rallying point for this pattern lasted from early November to mid-December, when Dogecoin declined at $0.48 and began consolidating around $0.48 to $0.4. This was followed by the treatment phasewhich continued from mid-December through the first weeks of January after Dogecoin broke below $0.4
Recent positive price movements show that Dogecoin has now left the manipulation phase and is now in the distribution phase. If history were to repeat itself, Dogecoin could experience another parabolic rally from here, driven by increased market participation and growing bullish sentiment.
Breaking out of consolidation: Parallel 2017
Trader Tardigrade expected the spread to push the price of Dogecoin above the current high of $0.7316 and eventually above the $1 mark. The final price target is around $1.3, which represents a 225% upside from the current price.
Tardigrade he also drew a parallel between Dogecoin's current trend and its price action from 2017. He noted that Dogecoin has broken out of a consolidation trend in a manner similar to the breakout before the rally in 2017. If history repeats own statement, Dogecoin will it could reach a local peak above $3 in 2025.
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At the time of writing, Dogecoin is trading at $0.3975.
Featured image from Pexels, chart from TradingView
