Dogecoin Price Poised for Parabolic Run If $0.18 Resistance Breaks

Dogecoin price is attempting to bounce back. Traders are determining whether the pullback is a consolidation or a sign of trend exhaustion.

Analysts believe the recent pattern is similar to accumulation zones experienced before major rallies. However, short-term data still suggests volatility may persist before momentum returns to the upside.

Dogecoin Price Forming Recovery Triangle

Trader Tardigrade stated that the Dogecoin price is completing its green recovery triangle ahead of a possible bullish reversal.

This structure has been preceded by strong rallies, such as the one seen in 2023, he explained. The pattern, he noted, represents a healthy consolidation before continuation.

According to Tardigrade, the Dogecoin price is still in a recovery setup despite the recent pullback. Once the triangle is complete, he expects a move towards $0.30.

The formation is indicative of previous accumulation phases that triggered sharp impulsive rallies. He believes traders frequently lack confidence during these quiet periods and miss the next surge.

He showed that over $10 million in liquidity accruing between $0.1837 and $0.1839 triggered a large liquidation sweep. The zone was over-leveraged, clearing positions before the market stabilised.

Using Ichimoku and heatmap analysis, Tardigrade stated the setup is still bullish, with momentum likely to return once the triangle closes.

Liquidity Sweep Resets the Market

In a follow-up post, Tardigrade highlighted that Dogecoin’s plunge after the liquidity sweep was expected.

He explained that the price testing the $0.1837–$0.1839 level cleared out leveraged positions. The move reset the market structure, and a healthier base formed around $0.17.

Tardigrade said that this pattern is characteristic of periods before major upswings. It sheds excess leverage and returns to equilibrium.

He sees a gradual improvement in recovery as demand rises near key supports. The analyst added that price stability above $0.16 keeps the bullish setup intact.

He also said the triangle structure is almost complete. Once the volume expands and the price closes above the resistance, a new impulsive rally could begin. Tardigrade encouraged traders to be patient, as consolidations such as this often precede powerful market expansions.

Accumulation Points to Breakout of Dogecoin price

Analysts at BitcoinSensus noted that Dogecoin is continuing to print higher lows and higher highs, and accumulation is on.

They said the current pattern resembles previous consolidation areas that have led to parabolic runs. This structure, they added, is bullish as long as the price is above $0.16.

Their chart showed an accumulation range for Dogecoin trading over a weekly period, with volume building before breakouts. Once price holds above $0.20, they expect a frenzy that may send it towards $0.80.

This move would be similar to previous explosive cycles fuelled by similar technical setups, the analysts said. Patient investors are often the ones who benefit the most during periods of accumulation, they added.

Analysts think the breakout of resistance should give Dogecoin a long-term momentum boost. BitcoinSensus is bullish, with recurring historical trends and strong support from strong bases.

Bear Flag Risk Remains

Meanwhile, analyst Chill Trader showed a short-term bearish scenario. He said Dogecoin price is creating a bear flag on lower timeframes, suggesting a possible downside before recovery.

The structure shows lower highs within an ascending channel, indicating fading short-term strength.

He warned that the price may retest $0.15 if support fails. However, a bounce from that level may be the beginning of the next bullish wave. Chill Trader expects temporary weakness but said long-term accumulation remains intact.

He added that volatility could remain high as traders respond to intraday volatility. Still, he agrees that defending the $0.15-$0.16 area will be key to maintaining a bullish bias. A positive bounce there, he said, could confirm the next upward move.