Diamond Bottom Pattern Forms as Bulls Target $0.185

Tech

Diamond Bottom Pattern Forms as Bulls Target $0.185

• DOGE price started a fresh increase from $0.1650, moving above $0.170 and $0.172
• A bullish trend line is forming with support at $0.1740 on the hourly chart
• Technical analysts spotted a Diamond Bottom Reversal Formation, suggesting the correction may be ending
• Price Momentum Oscillator (PMO) shows signs of a bullish crossover
• If DOGE breaks above $0.1790, it could rally toward $0.185 or potentially $0.35 in the longer term

Dogecoin has been showing promising price action recently, with technical indicators suggesting a potential upward movement after finding support near the $0.1650 level. The popular meme cryptocurrency has been gaining momentum as it recovers from its recent correction phase.

The price of DOGE has climbed and moved above the $0.170 resistance zone. This upward movement mirrors similar patterns seen in other major cryptocurrencies like Bitcoin and Ethereum during the same period.

Bulls have pushed DOGEs price above the 50% Fibonacci retracement level of the downward move from the $0.1843 swing high to the $0.1642 low. This is often considered a positive sign for future price action.

Chart analysis reveals a connecting bullish trend line forming with support at $0.1740 on the hourly chart of the DOGE/USD pair. This technical pattern provides a floor for the price, potentially limiting further downside.

Dogecoin is now trading above the $0.1750 level and the 100-hourly simple moving average. This positioning above key moving averages typically indicates stronger bullish momentum.

#Dogecoin Price Momentum Oscillator (PMO) signals a Bullish Crossover, turning into GREEN time

— Trader Tardigrade (@TATrader_Alan) May 6, 2025

Technical Patterns Emerging

Several technical analysts have identified important patterns forming on Dogecoin charts. One of the most telling is the Diamond Bottom Reversal Formation spotted on the 1-day timeframe.

This bullish diamond pattern suggests a potential shift to an upward trend after a period of downward movement. It appears as a symmetrical diamond-shaped pattern created by converging trendlines, usually following persistent negative activity.

The emergence of this pattern indicates that the ongoing DOGE correction may be nearing its end. When looking at the chart, the coin previously tested the upper line of the pattern but failed, leading to a slight pullback.

However, technical analysts predict that when a breakout finally occurs, DOGE could see a sharp rally, potentially reaching the $0.35 price level in the longer term.

Immediate resistance on the upside is near the $0.1780 level. The first major resistance for the bulls could be around the $0.1790 level and the 76.4% Fibonacci retracement level of the recent downward move.

The next major resistance is near the $0.1840 level. If DOGE closes above this resistance, it might continue toward the $0.1880 level. Further gains could push the price toward $0.1920, with the next major target for bulls potentially being the psychologically important $0.200 level.

Dogecoin Price on CoinGecko

On the downside, if DOGE fails to climb above $0.1790, it could start another decline. Initial support is near $0.1740, with the next major support at $0.1720.

The main support sits at $0.1650. A break below this level could send the price down to $0.1550 or even $0.1450 in the near term.

Price momentum indicators are showing positive signs despite the current correction. The Price Momentum Oscillator (PMO) is displaying an impending bullish crossover, turning into what analysts call “green time.” This change suggests a phase of positive price movements may be approaching for DOGE.

The Relative Strength Index (RSI) for DOGE/USD is now above the 50 level, indicating growing buying pressure. Similarly, the MACD is gaining momentum in the bullish zone.

During the recent bullish market action in late April, Dogecoin witnessed a notable upward movement, rising to the $0.18 mark with robust momentum and volume. Although the dog-themed meme coin lost some steam afterward, current technical developments point to a potential rebound.

Some cryptocurrency traders believe that when DOGE makes a bullish move, other meme coins could follow suit, potentially sparking broader enthusiasm in the meme coin sector. This prediction is based on historical patterns, including a 28-day trend that suggests the meme coin is about to break out.

The most recent data shows DOGE trading at approximately $0.173 on daily charts, positioning it at a crucial level that could determine its next major move.