A prominent cryptocurrency analyst has identified a technical indicator on Dogecoin's price chart known as an "inverted head and shoulders pattern." This pattern, widely recognized as a bullish signal, has led the analyst to set an ambitious target of $10 for Dogecoin, suggesting strong potential for future price gains.
Dogecoin’s Price Momentum Toward $10
On November 10, crypto analyst Dima James Potts shared insights on X (formerly Twitter), noting the appearance of an inverted head and shoulders pattern on Dogecoin’s chart. This pattern is often associated with a trend reversal, signaling a shift from bearish to bullish conditions and marking the potential start of a significant upward move.
Potts explained that in previous market cycles, whenever Dogecoin formed this pattern and closed above a specific "yellow line" resistance level, it experienced remarkable rallies. For instance:
In the first cycle after breaking above this resistance, Dogecoin surged over 3,364%.
In a subsequent cycle, it rallied by an astounding 12,189% after surpassing a similar resistance level.
According to Potts, Dogecoin is approaching this key resistance level again, and a successful close above it could trigger a strong uptrend, potentially followed by a temporary pullback. His projection also extends into 2025, suggesting that if this pattern holds, Dogecoin could initially hit the $10 target and, under ideal conditions, reach as high as $36.
Rising Trading Volume as a Bullish Signal
Potts also pointed to Dogecoin's increasing trading volume, which could further support the coin’s upward momentum. Growing volume often indicates heightened investor interest and can reinforce price trends, potentially contributing to a further rally for Dogecoin.
Current Price Updates
Amid ongoing positive sentiment, Dogecoin’s recent market performance highlights significant upward momentum. As of the latest data from CoinMarketCap, Dogecoin is trading at $0.28, having surged over 84.66% in the past week. Following the results of the recent U.S. presidential election, which confirmed Donald Trump’s victory, Dogecoin gained 25% in a single day, with its daily trading volume soaring by 199.49%.
While these developments suggest a promising future for Dogecoin, it is essential to remember the volatile nature of cryptocurrency markets and the inherent risks involved.
