Dogecoin is facing a confusing technical setup as technical analysis warns of a significant move on a higher time frame that could send DOGE first into a deeper accumulation zone. The chart looks bearish at first glance, but the inverted price scale changes the reading, turning the expected decline into a bearish level Long term bullish setup This refers to $1, $2, and eventually $5.
Dogecoin is approaching its own smart money territory
Technical analysis Done by The cryptocurrency analyst known as Crypto Patel was created around the idea that Dogecoin might do just that You still need to pay less Before it begins its biggest upward cycle. The 3-week Crypto Patel DOGE/USD chart on TradingView covers more than a decade, from 2014 to the forecast 2028, and shows recurring price action. However, the key detail is that the chart is inverted for confirmation, meaning that the bearish forecast actually indicates a long-term upward movement.
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The chart shows Dogecoin inside the downward channel that has guided the price for years. The first major phase began with the rejection of the upper trend line prior to the 2017 session, followed by a significant move that eventually gave way to another long correction. A second major base formed around early 2021, which subsequently led to Dogecoin’s explosive takeoff during the recent meme coin mania.
Crypto Patel appears to be comparing the current structure to those of previous stages. The third setting on the chart is developing now, Dogecoin appears to be rejecting at the upper trend line of the down channel.
What’s next for Dogecoin?
The rejection zone identified around the current zone shows that Dogecoin price can still return as low as $0.07 in the accumulation range to reach a bottom before a strong reversal in the higher time frame. According to Crypto Patel, retail traders will sell the bottom, but smart money traders will Alerts are already set up.
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Interestingly, on-chain data supports the idea of movements of smart money and whales accumulating Dogecoin. Last in the series Data in early May It shows that Dogecoin whales recently recorded their busiest day in six months, and most of this activity is cumulative movements.
If Dogecoin breaks below the current range without strong immediate demand, the move could continue to pull the price deeper into the Crypto Patel accumulation range of $0.10 to $0.07. However, the projection shows that Dogecoin price is reversing around the accumulation range and starting to rise, with the analyst indicating targets of $1, $2 and $5.
Crypto Patel targets $1, $2, and $5 very optimistic, Especially since Dogecoin is down 85% from its all-time high in 2021 of $0.7316.
At the time of writing, Dogecoin is trading at $0.109. The first major checkpoint Will be confirmed daily The weekly close is above $0.10, restoring higher resistance levels around $0.15 to $0.20, and confirming that the current structure has emerged from a long corrective phase.
Featured image from Getty Images, chart from Tradingview.com
