Dogecoin (DOGE) is showing signs of a potential bullish breakout as the price forms a diamond bottom reversal pattern, a rare but powerful indicator that could set the stage for significant upside.
According to Trader Tardigrade, the pattern is developing just as DOGE’s weekly chart begins to establish higher highs and higher lows, a sign of mounting bullish pressure. Fellow trader Galaxy echoed Tardigrade’s sentiment, noting that Dogecoin’s prolonged accumulation period in 2024 is now shifting into a recovery phase.
“The 600-day accumulation phase could be the launchpad for a major rally,” Galaxy noted in a recent X post.
Macro Risks Weigh on DOGE, But $0.28 Target Still in Sight
Despite the promising technical setup, macro conditions remain a headwind for Dogecoin and other risk assets. At the Federal Reserve’s latest policy meeting, the central bank highlighted ongoing economic uncertainty amid the US-China trade war, which has driven inflationary pressures while stalling growth.
As Bitcoin nears the $100,000 milestone, its status as a digital safe haven remains intact. If BTC manages to reclaim $100K and approach its previous all-time high of $108,000, meme coins like Dogecoin could experience a strong rally.
For Dogecoin, the critical level to watch is $0.20. A confirmed breakout above this resistance could clear the path to $0.28, but macro catalysts will need to align. Specifically, a reduction in inflationary pressures could prompt the Federal Reserve to consider rate cuts, creating favorable conditions for speculative assets.
Until then, accumulation at lower levels may be the optimal strategy for DOGE investors, especially with the diamond bottom reversal pattern indicating that a medium-term bottom could be forming.
Looking Beyond DOGE – Is Solaxy (SOLX) the Next Big Play?
While Dogecoin struggles to break higher, Solaxy (SOLX) is emerging as a top contender in the Layer 2 ecosystem.
Built on Solana, Solaxy aims to solve network congestion issues while delivering 123% APY in staking rewards. With over $33 million raised in its presale, SOLX is gaining traction among investors seeking strong fundamentals and high potential returns.
Priced at $0.001712, SOLX offers an attractive entry point for those looking to diversify beyond meme coins. As Solana continues to expand its ecosystem, Solaxy’s focus on multi-chain compatibility positions it well for sustainable growth, making it a compelling alternative to Dogecoin during periods of market uncertainty.
