The Dogecoin price has formed bullish chart patterns, pointing to a strong comeback in April this year. The DOGE token was trading at $0.1917 on Friday, slightly above the year-to-date low of $0.1430. This article explores why its technicals point to a strong surge in the coming weeks.
Dogecoin Price Technical Analysis
Technical analysis suggests that the DOGE price is at a favorable point after plummeting 70% from its highest level last November. The first important signal is that the meme coin formed a doji candlestick pattern two weeks ago. A doji is a candlestick with a small body and long upper and lower shadows, a common reversal indicator. This candle formed on the weekly chart.
A falling wedge is the most important pattern the Dogecoin price has formed, and it is clearly visible on the daily chart. This pattern consists of two descending and converging trendlines.
The lower trendline has connected the lower lows since November 17, while the upper lines have linked the highest levels since December last year. Dogecoin (DOGE) has now moved above the upper side of this pattern, which is a bullish sign.
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By measuring the widest part of this wedge and the same distance from the point of breakout, we can estimate that the Dogecoin price will surge by 60% to $0.2800. This level is significant as it coincided with the highest point on February 15.
Additionally, the Relative Strength Index (RSI) has moved above the neutral point at 50, while the two lines of the MACD have formed a bullish crossover and are pointing upwards.
The bullish Dogecoin price forecast will be invalidated if it drops below this month’s low of $0.1477, coinciding with the lower side of the wedge pattern.
DOGE to Benefit From US Recession Odds
Donald Trump’s anticipated Liberation Day tariffs could be an unlikely catalyst for the Dogecoin price. He is expected to announce reciprocal tariffs next week, days after he unveiled his auto tariffs.
Some analysts believe these tariffs and a trade war could negatively impact the economy, potentially leading to a recession
A recession would be a catalyst for a surge in cryptocurrencies because it would lead to monetary and fiscal stimulus in the US. Historically, response measures like interest rate cuts, quantitative easing, and government spending would be bullish for coins like DOGE.
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