Dogecoin Breaks Out of Diamond Bottom Pattern: Heres How High DOGE Can Go
Analyst Trader Tardigrade identifies a Diamond Bottom on the Dogecoin daily chart, highlighting a confirmed breakout and bullish reversal setup.Notably, Dogecoin has surged past a key psychological level, trading at $0.2041 as of May 9, 2025. The move comes alongside a 24-hour gain of 11.7% and a seven-day increase of 13.2%. Trading volume also crossed $2.9 billion within the same period, reflecting heightened market interest. While this price action is notable, the focus now turns to technical and on-chain indicators signaling the potential for sustained upward movement.Dogecoin Diamond Bottom Breakout Tardigrade identified a Diamond Bottom pattern in the daily timeframe, a classic bullish reversal formation. This pattern followed a prolonged downtrend from Januarys $0.40 high to an April low near $0.13. As the pattern developed, price volatility expanded before narrowing, forming the diamond-shaped structure.The diamonds upper trendline had resisted price advances on several occasions. However, Dogecoin recently broke above this boundary, signaling a potential trend reversal. Tardigrades chart marked the breakout area. Now, the analyst is targeting $0.29 next for DOGE, implying a 45% increase from the $0.20 mark.https://twitter.com/TATrader_Alan/status/1920403623923835298Adding to The Bullish SetupOn a separate 12-hour chart, analyst Javon Marks identified a falling wedge stretching from a $0.48 high in late 2024 to a narrowing range between $0.14 and $0.16. Dogecoin has now moved beyond the wedges upper boundary, which typically suggests a bullish breakout.Further supporting this view, Marks chart featured a curved trajectory pointing toward $0.30. This short-term projection complements a longer-term technical target at $0.65. Achieving this level would represent a 225% move from the current price. Moreover, the Relative Strength Index (RSI) showed higher lows between February and April even as the price declined. This positive divergence indicates weakening bearish pressure, reinforcing the strength of the recent breakout.On-Chain Metrics Show Strong Network GrowthOn-chain data from IntoTheBlock also supports the technical patterns, revealing substantial increases in Dogecoin network activity. The latest 7-day data highlights a 102.40% rise in new addresses, suggesting a sharp influx of new participants.
Text source: The Crypto Basic
