Crypto analyst Trader Tardigrade has recently pointed out a notable shift in Dogecoin’s price movements as it begins to fluctuate within a specified range. Using technical analysis, he suggests that Dogecoin is undergoing a manipulation phase. Fascinatingly, this leading meme-based cryptocurrency has been mirroring the Power of Three (PO3) pattern over several weeks, indicating the potential for an impending bullish surge.
Dogecoin and the Power of Three Pattern
The Power of Three is a unique chart pattern in technical analysis that generally results in a strong bullish shift. This pattern involves three essential stages: Accumulation, Manipulation, and Distribution, which together shape market cycles.
For Dogecoin, which has experienced a downward trajectory since early December, this pattern has manifested in several significant corrections, pushing its price below the $0.30 mark. Trader Tardigrade explains that this decline fits within the Power of Three pattern, hinting that a price increase could be on the horizon.
In analyzing Dogecoin’s trajectory, Trader Tardigrade notes that during the daily candlestick timeframe, Dogecoin’s accumulation phase spanned early November to mid-December, following a notable surge from October into November. Throughout this period, the price consolidated within a tight range, indicating limited activity but an underlying strong interest from buyers, even as some traders cashed in their profits.
Recently, over the past two weeks, Dogecoin’s price has entered the manipulation phase, marked by a sharp decline driven by heightened volatility. This was especially evident on December 20 when Dogecoin’s price briefly dipped to $0.267. This manipulation phase might be setting the stage for the final and most dynamic stage of the pattern: the distribution phase.
Distribution Phase Predicted to Boost Dogecoin to New Highs
The culmination of the Power of Three pattern is the distribution phase, characterized by robust bullish momentum. For Dogecoin, Trader Tardigrade forecasts this phase might propel its price to reach unprecedented heights, exceeding the previous all-time high of $0.7316. Specifically, he envisions Dogecoin’s value climbing to approximately $0.95 during this phase.
Presently, Dogecoin is priced at $0.332, having bounced back by roughly 3.5% over the last 24 hours. Achieving the $0.95 mark would represent a substantial 186% increase from its current valuation. Regarding the timeline, the analyst suggests that this notable upswing might occur within the first two weeks of 2025.
This prediction aligns with broader market expectations for Dogecoin, as many investors and analysts are optimistic about breaking the $1 barrier. Although the $0.95 target doesn’t quite hit this milestone, it strongly reflects the persistent bullish sentiment surrounding Dogecoin.
Image credits to Dall.E, with chart data sourced from Tradingview.com
