Key Points:
The Adam and Eve pattern of DOGE and the Fibonacci convergence point indicate a potential 25% increase.
A large short liquidation area above $0.216 may trigger a rapid surge.
DOGE rose 2.5% to $0.20, with market attention shifting to Elon Musk's latest X post, which showcased the meme coin mascot Shiba Inu. Analysts noted that DOGE's price responded with a 29% increase.
This move continues DOGE's strong rebound from a recent low of $0.13 (the lowest level since April), recovering 55% in just two weeks.
Musk's tweets previously propelled DOGE from a few cents to nearly $0.73 in 2021.
Now, with improved market sentiment and several technical indicators flashing bullish signals, this top meme coin seems poised to continue its recovery trend in the second half of October.
Dogecoin is forming an Adam and Eve double bottom pattern, a bullish reversal pattern that first shows a sharp "V" shaped decline (Adam), followed by a rounded recovery (Eve). Industry experts indicate that this pattern suggests selling pressure is weakening, while buyers are regaining control.
The neckline for DOGE is around $0.216, and a confirmed breakout above this level could trigger a move towards $0.260, approximately 25% higher than the current price.
This target aligns with the measured move prediction of the pattern and coincides with a key technical convergence area. It also matches the 0.382 Fibonacci retracement level on DOGE's weekly chart, as shown in the image below.
As DOGE rebounds from a support convergence area formed by an ascending trend line and the 0.236 Fibonacci line, the rebound outlook is further strengthened, reinforcing the view that buyers are holding the lows while targeting $0.26 as a mid-term upward goal.
Futures data shows a high density of short liquidation concentration between $0.215 and $0.27, while the long liquidation level below $0.18 is relatively flat.
Market observers believe this imbalance indicates lower downside risk, as fewer leveraged long positions would trigger significant selling pressure. Conversely, there is a dense wall of short liquidity waiting to be squeezed on the upside.
Therefore, a breakout above the $0.216 neckline could trigger a wave of short liquidations, accelerating the move towards $0.26 as bearish traders are forced to cover.
Related: 88% of cryptocurrency airdrops perform poorly, how to break this curse?
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original: “Dogecoin Price Expected to Rise 25% After Musk Posts DOGE-Related Content”
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