Dogecoin (DOGE) is currently trading around $0.17, and technical analysts are closely watching the formation of a diamond bottom reversal pattern, a bullish indicator that could potentially signal a strong uptrend.
Trader Tardigrade, a well-known analyst, highlighted the emerging pattern in a recent X post, suggesting that the current price structure could mark the end of a prolonged downtrend. Tardigrade believes that such patterns often form near market bottoms, indicating a reversal to the upside.
His outlook is echoed by fellow trader Galaxy, who noted that the weekly chart is starting to show higher highs and higher lows, indicating a potential shift in momentum. According to Galaxy, Dogecoin’s 2024 breakout from a 600-day accumulation phase could set the stage for a substantial rally.
Dogecoin Price Outlook – Will $0.28 Be the Next Target?
Despite the technical bullish signals, macroeconomic conditions remain a concern for meme coins and risk assets. The Federal Reserve’s latest policy announcement reiterated concerns about economic uncertainty amid the ongoing trade war initiated by President Trump, raising the risk of stagflation for the first time in decades.
Bitcoin has been resilient in this environment, nearing a $100,000 retest, driven by its status as digital gold and a hedge against inflation. If Bitcoin manages to break above $100,000 and heads toward its previous all-time high of $108,000, Dogecoin could follow suit.
A breakout above the $0.20 resistance level could pave the way for a move toward $0.28, but the market would need a strong bullish catalyst to maintain momentum. Potential triggers include a cooling of US inflation, allowing the Fed to consider interest rate cuts, which historically benefits speculative assets like meme coins.
Until then, DOGE investors might consider accumulating, as the current market presents an opportunity to enter positions at relatively lower levels.
Alternative Meme Coin Play – Solaxy (SOLX)
While Dogecoin navigates uncertain market conditions, Solaxy (SOLX) is emerging as a promising investment with strong fundamentals.
A Layer 2 solution built on Solana, Solaxy aims to resolve Solana’s network congestion issues, enhancing transaction speeds and scalability. With over $33 million raised in its presale, SOLX is gaining significant investor attention.
Currently priced at $0.001712, SOLX offers attractive staking rewards of up to 123% APY, making it a compelling alternative for those seeking potential gains outside the meme coin space. As Solana’s ecosystem continues to grow, Solaxy’s technical focus on multi-chain compatibility could position it as a long-term contender in the Layer 2 market.
