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Doge dropped into the negative zone within a seven-day timeframe, with a cumulative decline of 6.11% over the past week. However, this price trend has led to a bullish formation on the 1-hour candlestick chart.
This upward formation emerged after Doge briefly corrected to $0.215, with recent trading days showing higher lows and more solid support. This, in turn, led to the formation of an inverted head and shoulders pattern, suggesting a rapid price increase for Doge.
Analysts Identify Inverted Head and Shoulders Pattern
Cryptocurrency analyst Klejdi Cuni published a technical outlook on social media platform X, emphasizing the inverted head and shoulders pattern on the DOGE/USDT 1-hour chart. The pattern consists of three different troughs, with the middle trough being the deepest, formed on May 25th. The right shoulder was formed between May 23rd and 24th, which could be interpreted as a short-term bullish reversal.
The analyst notes that this specific inverted head and shoulders pattern is relatively small and more suitable for short-term traders seeking quick fluctuations. At the time of writing, Doge is still in the process of forming the left shoulder, currently testing the neckline resistance around $0.228. If it breaks through this neckline with sufficient trading volume, it could trigger a rapid increase.
Doge's Short-Term Price Target
If the bullish inverted head and shoulders pattern unfolds as expected, analysts predict Doge's price will first surge to the $0.239 area. This level served as support for several hours on May 22nd and was ultimately broken and became a resistance level during a brief upward attempt on the evening of May 23rd. Therefore, this area is worth watching, as a successful breakthrough would open the door to the next target.
If Doge successfully breaks through $0.239, the next short-term target price will be $0.25. Although this target is moderate compared to some more aggressive medium to long-term predictions, it is crucial for other reasons. A rebound to $0.25 would mean Doge has fully recovered to the latest local high point in May. This, in turn, could initiate a sustained upward trend, with the ultimate target price reaching $0.3 or higher.
The chart predicts a stepped movement, with an immediate rise after the breakthrough, followed by consolidation, and ultimately forming a second wave of increase that pushes Doge's price to $0.25. However, as with any pattern, confirmation is crucial. Failure to hold the breakthrough area or falling below the right shoulder (currently around $0.222) would weaken the bullish outlook and potentially lead Doge to retest $0.21.
At the time of writing, Doge is trading at $0.2245.
