Cryptoanalyst Trader Tardigrade has highlighted an interesting development in the price movement of Dogecoin when it starts trading within a range. According to the crypto analyst’s 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 for the past few weeks, pointing to an imminent bullish wave.
Dogecoin aligns with Power Of 3 pattern
The Power Of 3 pattern is an interesting price pattern in technical analysis that always ends in a strong bullish movement. This pattern describes three critical phases; Accumulation, Manipulation and Distribution, which collectively define market cycles.
In the case of Dogecoin, the leading meme cryptocurrency remains on a downtrend path since the second week of December, with notable corrections leading to a breakout below the $0.30 threshold. As noted by Trader Tardigrade, this decline is part of the Power Of 3 pattern, that is, it is very important for a price increase from here.
According to Trader Tardigrade, using the daily candlestick chart, Dogecoin’s accumulation phase lasted from early November to mid-December after a crazy surge that lasted from October to November. During this accumulation period, Dogecoin price consolidated within a tight range, indicating moderate activity but significant buying interest, even as some holders took profits.
#Dogecoin seems to be aligning with the Power of Three (PO3) pattern 🔥$Doge recently moved from a long consolidation in the Accumulation Phase, which lasted from early November to mid-December, to the Manipulation Phase. After this, the Distribution Phase is expected… pic.twitter.com/qvEYCQbUly
— Tardigrade Trader (@TATrader_Alan) December 24, 2024
However, the recent price action over the past two weeks has caused Dogecoin price to enter the manipulation phase. This phase has been characterized by a strong downward movement due to increased volatility, especially on December 20, when the price of Dogecoin briefly fell to $0.267. However, this phase could be a prelude to the final and most explosive stage of the pattern (the distribution phase).
Distribution Phase to Send Dogecoin Price to New All-Time Highs
The Power of 3 pattern culminates in the distribution phase, which is characterized by strong bullish momentum. In the case of Dogecoin, Trader Tardigrade predicted that this phase would take its price to new all-time highs above the current $0.7316. In particular, the analyst highlighted a price movement that would see Dogecoin reach $0.95 in the distribution phase.
At the time of writing, Dogecoin is trading at $0.332, having recovered approximately 3.5% in the last 24 hours. Reaching the $0.95 target would result in an increase of approximately 186% from the current price. Regarding the schedule, the analyst pointed to the first two weeks of 2025. as the probable period for this bullish movement to materialize.
This The prediction aligns with the broadest market expectations for Dogecoin, with many investors and analysts anticipating a break above $1. While the $0.95 target stops just shy of this milestone, it serves as a compelling indication of persistent bullish sentiment regarding Dogecoin.
Featured image created with Dall.E, chart from Tradingview.com
