Dogecoin has spent the majority of the past 30 days drifting lower, falling into a tight and almost predictable rhythm of lower highs and lower lows. The movement has been sluggish, but technical analysis shows that something important may now be forming.
A new analysis shared by crypto commentator Clifton Fx suggests that Dogecoin is approaching the end of this decline, and the chart he posted highlights a falling wedge pattern that could become the basis for a 96% rally if buyers finally step in with conviction.
A Falling Wedge That Has Started Attracting Attention
Technical analysis of Dogecoin’s price action on the 12-hour chart shows two downward-sloping trendlines gradually converging. This pattern is highlighted by coiling price action, with each bounce becoming smaller and the space between the trendlines becoming narrower.
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This structure is what analysts often describe as a falling wedge. It forms during a downtrend, but the more it tightens, the more it hints that sellers are losing control and buyers are quietly gaining ground.
Clifton Fx pointed exactly to this development in his post, noting that Dogecoin is already pushing against the upper boundary of the wedge. The chart he shared shows the price making repeated attempts to break out, something that is typically viewed as early evidence that momentum is shifting.
As it stands, recent price action in the past 48 hours or so has led to the creation of multiple green 12-hour candles after Dogecoin rebounded from a $0.135 low. This has caused the Dogecoin price to approach the upper resistance trendline, and the outlook depends on what happens here.
In the analyst’s view, a strong breakout candle above the wedge would confirm that the pattern has completed and that Dogecoin is ready for a sustained move upward.
The Case For A 96% Rally
The appeal of this technical setup is the potential size of the move if the breakout plays out. The wedge spans a wide vertical range, and in technical analysis the height of the pattern is a guide for estimating the rally after a breakout.
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Based on the structure visible on the chart, a successful breakout would open the door for a 96% climb from current levels. However, this doesn’t guarantee that the move will happen immediately.
Dogecoin has been under pressure for weeks, and a breakout without proper momentum can easily fail. A clean surge above the trendline, preferably one that arrives with rising trading volume, would help confirm that buyers are taking over.
Anything slower or weaker could see the Dogecoin price rejecting at the resistance trendline and falling to approach the lower support trendline, which is now around the mid-$0.13 range.
Featured image from Pngtree, chart from Tradingview.com