Dogecoin’s price action on the 1-hour candlestick timeframe chart has been defined by a sharp decline since April 14, with the meme coin slipping into a falling wedge formation. This three-day downtrend, however, is now showing signs of reversal. According to an analysis by crypto analyst KledjiCuni on the TradingView platform, the correction phase may have come to an end, and Dogecoin could be gearing up for a short rally.
Dogecoin Short-Term Correction May Come Before Upside Resumes
The analysis of Dogecoin’s bullish potential reveals that the meme coin recently broke out of a falling wedge, a pattern often considered a precursor to bullish momentum. Notably, this falling wedge formation, which saw the Dogecoin price fall from $0.17 to $0.15 over three days, is part of an extended bearish sentiment that has persisted for almost two months.
However, Dogecoin is starting to break out of this falling wedge, a move that marks a shift in short-term sentiment as price begins to reclaim upward momentum despite lingering bearish pressure in the broader crypto market.
Currently, Dogecoin appears poised to embark on an upward trend. The breakout has occurred, but the analyst cautions that a pullback to the $0.1550 zone is still likely in the immediate term. Such a correction would serve as a retest of the breakout structure and could help confirm support before the next leg upward. This short-term dip does not invalidate the bullish setup. Instead, it could offer an entry point for traders anticipating further upside.
Upside Price Targets Identified At $0.1607 And $0.1670
Once Dogecoin completes its expected pullback toward the $0.1550 zone, the next projected move is a continuation of the bullish reversal, with price action that cancels out the entire correction that began on April 14. Interestingly, analyst KledjiCuni identified two key resistance levels to watch in the short-term rally phase. The first resistance level is at $0.1607, a level that formed a lower high in the falling wedge formation.
If Dogecoin manages to clear $0.1607 with strong volume, this will push the price towards the second key resistance at $0.1670. This price level aligns with the apex of the falling wedge and is the technical origin of the downtrend in this wedge. Reaching this point would effectively complete the recovery from the bearish wave.
These targets represent realistic bullish objectives that traders can capitalize on in the short term, provided the market holds above the recent breakout zone and avoids slipping back below the wedge.
At the time of writing, Dogecoin is trading around $0.1560, still hovering slightly above the $0.155 support zone highlighted. The meme coin has declined by 0.34% in the past 24 hours. Nevertheless, there is still a possibility of a bounce back to $0.17 before the end of the week.
Featured image from iStock, chart from Tradingview.com
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