Crypto analyst Trader Tardigrade has highlighted an interesting development in Dogecoin price movement when it starts trading within a range. According to crypto analyst technical analysis, Dogecoin is currently in a manipulation phase. Interestingly, he noted that the king of meme coins has been following the Power of Three (PO3) pattern over the past few weeks, indicating an impending bullish wave.
Dogecoin is adapting to the Power of 3 pattern
The Power Of 3 pattern is an interesting price pattern in technical analysis that always ends in a strong, bullish move. This pattern describes three critical phases; Accumulation, manipulation and distribution that together define market cycles.
In the case of Dogecoin, the leading meme cryptocurrency has remained on a downtrend path with significant corrections since the second week of December resulting in a downward break the threshold of $0.30. As trader Tardigrade pointed out, this decline is part of the “Power Of 3” pattern. That means it is very important for a price increase from here.
According to trader Tardigrade, using the daily candlestick timeframe chart, Dogecoin’s accumulation phase lasted from early November to mid-December, after a crazy surge that lasted from October to November. During this accumulation phase, Dogecoin’s price consolidated within a narrow range, indicating muted activity but significant buying interest, even as some holders took profits.
#Dogecoin seems to match the Power of Three (PO3) pattern 🔥$Doge has recently transitioned into the manipulation phase from a long consolidation in the accumulation phase that lasted from early November to mid-December. Following this, the sales phase is expected to… pic.twitter.com/qvEYCQbUly
— Trader Tardigrade (@TATrader_Alan) December 24, 2024
However, recent price movements over the past two weeks have caused Dogecoin price to enter the manipulation phase. This phase was marked by a strong downward move due to increased volatility, especially on December 20th when the Dogecoin price briefly fell to $0.267. Nevertheless, this phase could be a prelude to the final and most explosive phase of the pattern (the distribution phase).
Sales phase is expected to drive the Dogecoin price to new all-time highs
The Power of 3 pattern peaks in the distribution phase, which is characterized by strong bullish momentum. In the case of Dogecoin, trader Tardigrade predicted that this phase would push the price to a new all-time high above its current value of $0.7316. In particular, the analyst noted a price movement that would see Dogecoin reach a high of $0.95 during the distribution phase.
At the time of writing, Dogecoin is trading at $0.332, having risen approximately 3.5% in the last 24 hours. Reaching the $0.95 target would represent an increase of approximately 186% from the current price. Regarding the schedule, the analyst mentioned the first two weeks of 2025 as a likely period for this upward trend to come about.
The Prediction agrees with the broader market expectations for Dogecoin, with many investors and analysts expects a break above $1. Even though the $0.95 target falls short of this milestone, it serves as a compelling indication of the ongoing bullish sentiment towards Dogecoin.
Featured image created with Dall.E, chart from Tradingview.com