Crypto analyst TradingShot has identified a pattern on DOGE’s chart that shows why a bounce above $0.3 is expected for the Dogecoin price. This provides some optimism regarding the foremost meme coin, which was one of the most affected by the recent downtrend in the crypto market. 

‘Channel Down’ Formation Shows Why The Dogecoin Price Could Bounce Above $0.3

In a TradingView post, TradingShot highlighted a ‘channel down’ formation, which showed that the Dogecoin price could bounce above $0.3. The analyst explained that DOGE is trading within a 2-month Channel Down, which on the wider scale may be a Bull Flag for this Bull Cycle. He added that regardless of the timeframe, DOGE’s price was sold aggressively and hit its 200-day Moving Average (MA) for the first time since October 25, 2024. 

On the other hand, TradingShot remarked that if this pattern is just a 1-day Channel down, then the low that the Dogecoin price recorded on Monday is technically a bottom on the pattern’s lower lows trend-line. He noted that the previous one, recorded on December 20, 2024, rebounded towards almost the 0.786 Fibonacci retracement level.

In line with this, with DOGE in oversold territory, the crypto analyst asserted that he expects the new bullish leg for the Dogecoin price to target $0.3800, just below the 0.786 Fib level. This provides some optimism regarding the foremost meme coin, wh

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Author: Scott Matherson