Dogecoin (DOGE) Primed for a Major Rally as the Meme Coin Breaks Out of a Descending Triangle Formation

Dogecoin, the largest dog-themed meme coin, has benefited notably from the rising momentum in the broader crypto market, leading to substantial gains in the last few days.

Dogecoin (CRYPTO: DOGE) has seen substantial gains in the last few days, largely due to the rising momentum in the broader crypto market. As the market rebounds, DOGE has demonstrated price movements and trends that hint at the potential for a major rally in the short term.

Here's a closer look at some of the bullish signs for Dogecoin following a retest:

1. Breakout From Descending Triangle Formation: Recently, Dogecoin has undergone a major movement that hints at an impending upswing. As highlighted by market expert and investor Trader Tardigrade in a recent analysis on the X (formerly Twitter) platform, DOGE has successfully broken out of a Descending Triangle formation, triggering fresh optimism among investors for a possible move to higher levels.

The breakout confirms the strength of the support level, which increases the probability of upward momentum in the short term. According to Trader Tardigrade, Dogecoin broke out of the bullish pattern at the bottom, reflecting a resurgence toward its upside trajectory.

As a result, the expert is confident that the chart pattern might result in a subsequent explosive increase in DOGE’s price, possibly to a new all-time high.

2. Retest Of Broadening Wedge Formation: Trader Tardigrade also pointed out a complete retest to the Broadening Wedge formation, which is a technical chart pattern that is usually followed by substantial growth.

This formation is characterized by a pattern of higher highs and lows, converging toward a single point of breakout. It is a key chart pattern that indicates elevated price volatility and possible trend reversals.

Trader Tardigrade identifies this retest as a classic bullish price action before notable upswings to new highs.

3. January May Be Bullish For DOGE: Since the beginning of the month, Dogecoin has seen impressive gains and positive investor sentiment. Observing past price movements in January, the meme coin may be set for extended gains in the coming days.

According to IC News, which examined DOGE’s monthly performances, January has mostly been a pivotal month for Dogecoin. Over the previous 10 years, the meme coin has averaged an outstanding 83.9% return during the month.

However, not all of January has been bullish for DOGE. Out of the last 11 Januaries, Dogecoin has seen positive returns just 5 times, with the median outcome being a 3.86% loss.

Overall, Dogecoin's recent price action and chart patterns suggest the potential for a major rally in the coming weeks. With key support and resistance levels and similarities in recent price performance with past trends, Dogecoin's path to a new peak is probable.