Dogecoin is currently trading at $0.196, with the price consolidating in a narrow range between $0.20 and $0.185 in the past 24 hours after it broke below the $0.22 support region last week. Despite the weakness, Dogecoin bulls have managed to maintain its price structure above $0.18. Interestingly, the current Dogecoin trading behavior is unfolding around major technical pattern on the monthly timeframe that may soon trigger a move to $0.50.
Monthly Chart Shows Rounded Bottom Dating Back To 2021
According to an analysis shared on the TradingView platform, Dogecoin is currently in the late phase of completing a rounded bottom pattern on the monthly chart. The formation spans nearly four years, beginning with the explosive 2021 bull run that pushed DOGE to its all-time high above $0.73.
Following that peak, the Dogecoin price crashed heavily and entered an extended correction phase through 2022 and early 2023. However, each drop consistently formed higher lows, giving rise to a smooth, curved base that now appears to be ending on the right side. The chart shared by the analyst shows the distinct shape of the rounded bottom, with the Dogecoin price now closely interacting with the right side of the rounded bottom.
In technical analysis, a rounded bottom is a powerful reversal pattern typically observed at the end of a downtrend. The current arc on the DOGEUSDT pair suggests that bulls have regained control at each major swing low since mid-2022. Most importantly, every contact with the rounded base line has led to a bounce towards a higher high, and this might repeat itself very soon The current monthly candle is testing that base support again, and a bounce here could send the Dogecoin price to a higher high above its December 2024 peak of $0.48.
300% Upside To $0.5 Now In Play
If the rounded bottom structure holds and Dogecoin confirms a bullish breakout, the projected target from the pattern could take the price above $0.50 to make a new higher high. Such a move would translate to an approximate 150% increase from its current price. This price region, shaded in red on the monthly chart above, coincides with a major resistance zone from December 2024 and sits just beneath the all-time high set in 2021.
Based on technical analysis, rounded bottom breakouts tend to be quick once the neckline resistance is breached, particularly when confirmed on high timeframes such as the monthly chart. As such, a confirmed break above $0.5 could send the Dogecoin price to new all-time highs above $0.73 very quickly.
The analyst who posted the chart notes that traders should watch closely, as either a bounce or rejection could shape the next big move. However, given the strength of the pattern and Dogecoin’s ability to consistently print higher lows, the setup currently favors the bulls. A clean monthly close above May’s high of $0.27 would be the first major sign that a breakout is close.
Featured image from Getty Images, chart from Tradingview.com
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