Date: Sun, March 02, 2025 | 02:17 PM GMT
The cryptocurrency market is showing signs of recovery as March begins, following heavy corrections since the November rally. The sell-off intensified throughout February, with sharp declines often occurring at the start of each week.
However, market sentiment appears to be shifting, and one of the most popular memecoin, Dogecoin (DOGE), is demonstrating resilience. After bouncing off a key support level, DOGE has narrowed its monthly decline to 39%, sparking speculation about a potential breakout.
Source: Coinmarketcap
Falling Wedge Formation
According to prominent crypto analyst @JohncyCrypto , DOGE is currently consolidating within a falling wedge pattern on the higher timeframes. This pattern began forming after the price was rejected from the December 8 high of $0.48. The wedge structure indicates that selling pressure has been decreasing over time, setting the stage for a potential bullish reversal.
In its most recent drop, DOGE successfully bounced off the lower wedge support and has recovered from $0.18 to current price of $0.20. If bullish momentum continues, the price could test the descending resistance, and a breakout could trigger a strong recovery.
Key Levels to Watch
If the momentum continues, DOGE could test the descending resistance and potentially break out of the falling wedge pattern. A successful breakout could lead to a move toward key price targets, including:
- $0.445
- $0.230
- $0.287
- $0.340
Analysts point out that a similar falling wedge breakout in September resulted in a +350% rally, suggesting that history could repeat itself if market conditions remain favorable.
Final Thoughts
As of now, Dogecoin (DOGE) has successfully bounced off key support, and early signs of bullish momentum are emerging. However, traders will be closely watching how the market reacts in the coming days, especially on tomorrow Monday, given that February saw multiple sharp sell-offs at the start of the week.
While the potential for a breakout is promising, market participants should remain cautious and watch for confirmation signals before assuming a sustained uptrend.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.
