Despite the ongoing broader market recovery, Dogecoin (DOGE) has been consolidating its values for a prolonged time. However, this sluggish movement is set to come to an end.
The latest metrics presented by crypto trader Ali Martinez show that the meme coin is displaying signs of a potential breakout from a falling wedge pattern.
DOGE prepares for bullishness
Today, crypto analyst Ali Martinez released data showing that DOGE seems to be forming a falling wedge pattern on his daily chart timeframe. With this formation, the meme coin is potentially setting up a signal of a bullish reversal.
The pattern typically forms when an asset price has been in a downward momentum for a prolonged period, signaling a potential breakout of bears. DOGE, which has been in a correction mode for several weeks, is now primed to heighten bullishness.
As per the analysis from Martinez, a DOGE breakout from the falling wedge pattern identified in the chart would follow with an 8.3% price rise. Martinez projects an uptrend target of $0.39, representing an 8.3% jump from its current price of $0.36.
Dogecoin price analysis
Dogecoin price experienced an impressive increase yesterday after the US government launched the Department of Government Efficiency (DOGE) official website, just a day after President Trump’s swearing-in. The website, which display’s Dogecoin logo, raised the cryptocurrency’s profile and prompted it to see a 13% upsurge from its previous value.
The launch of the website followed Trump’s announcement of an executive order (on Monday) to establish the government department, which aims to address inefficiency in federal operations.
The relationship between the government department and the meme coin is interesting as it has contributed to giving the cryptocurrency significant visibility. Market observers believe that this connection could expand the coin’s legitimacy and broaden market interest.
Dogecoin is currently at $0.3594, down 4.7% over the previous day, reflecting wild volatility in the market. However, it could experience an uptrend as pointed out by the above technical indicators.
The rollout of the official website owned by the Department of Government Efficiency (DOGE) and its use of Dogecoin’s logo has attracted user attention, especially traders and analysts. With the interplay of the bullish technical indicators, expanded visibility, and market sentiment, Dogecoin could experience uptrends in the coming days or weeks.
