Trader Tardigrade, a crypto analyst, has identified an intriguing development in the price movement of Dogecoin as it enters a period of trading within a range. Through technical analysis, the analyst has determined that Dogecoin is currently in a manipulation phase. It was noted that the popular meme coin has been adhering to the Power of Three (PO3) pattern for several weeks, indicating a potential upcoming bullish wave.
The Power of Three pattern is a significant price pattern in technical analysis that typically leads to a strong, bullish movement. This pattern consists of three crucial phases: Accumulation, Manipulation, and Distribution, which collectively define market cycles.
Dogecoin, the leading meme cryptocurrency, has been on a downtrend path since the second week of December, experiencing notable corrections that have led to a break below the $0.30 threshold. According to Trader Tardigrade, this decline is part of the Power of Three pattern, signifying its importance for a potential price surge.
Using the daily candlestick timeframe chart, the analyst highlighted that Dogecoin’s accumulation phase lasted from early November to mid-December after a surge in October to November. During this period, Dogecoin’s price consolidated within a narrow range, indicating subdued activity but significant buying interest despite some holders taking profits.
In recent weeks, Dogecoin entered the manipulation phase, characterized by a sharp downward move due to increased volatility, notably on December 20 when the price briefly fell to $0.267. This phase could be a prelude to the final and most explosive stage of the pattern, the distribution phase.
The distribution phase of the Power of Three pattern is expected to propel Dogecoin’s price to new all-time highs above its current peak of $0.7316. Trader Tardigrade predicted that this phase could push the price as high as $0.95. As of now, Dogecoin is trading at $0.332, with the potential target of $0.95 representing a 186% increase from the current price. The analyst suggested that the first two weeks of 2025 could be the likely period for this bullish move to materialize.
This prediction aligns with broader market expectations for Dogecoin, with many investors and analysts anticipating a break above $1. While the $0.95 target falls just short of this milestone, it serves as a strong indication of the prevailing bullish sentiment surrounding Dogecoin.
In conclusion, Dogecoin’s price movement is closely following the Power of Three pattern, with potential for a significant bullish wave in the near future. Trader Tardigrade’s analysis points towards a positive outlook for Dogecoin, with the distribution phase potentially leading to new all-time highs for the popular cryptocurrency.
