Dogecoin Price Prediction: The Diamond Bottom Pattern Indicates a Massive Rise of $DOGE

Dogecoin, currently at around $0.17, is in the process of forming a "diamond bottom reversal" pattern, a well-known technical analyst suggests that this pattern may signal a new bullish trend for the largest cryptocurrency. According to a post on X by Trader Tardigrade, such patterns often form when the price bottoms out.

The bullish thesis of trader Tardigrade is supported by colleague Galaxy, who argues in a post on X that the weekly price chart of Dogecoin has started to form higher highs and higher lows after breaking out in 2024 following a 600-day accumulation period. "I don't think everything is over," he speculated.

Dogecoin Price Prediction – Is a Higher Surge Coming Soon? The current macro conditions are not favorable for the new altcoin/meme season. As the Fed emphasized in today's FOMC policy announcement, the economic conditions in the United States remain very uncertain.

President Trump's trade war has increased inflation risks and growth risks, creating the prospect of "stagflation" for the U.S. economy for the first time in over 50 years. In such an environment, risk assets, including Dogecoin, are expected to not perform well. Thanks to the increasingly popular story of "digital gold" and safe havens, Bitcoin is looking attractive and is about to retest the $100,000 level. That, along with the favorable chart patterns mentioned above, could indicate that the price of Dogecoin has bottomed out in the medium term. If Bitcoin rises back above $100,000 and heads towards testing the record high of around $108,000, the price of Dogecoin may continue to recover. If the price can break through the resistance level of $0.20, the possibility of returning to the level of $0.28 is a likely scenario.

However, for a new meme season to emerge, a large positive catalyst is needed. This could pose an increasing risk to the declining inflation of the United States, opening the door for significant interest rate cuts from the Fed. Ultimately, cryptocurrencies / virtual currencies tend to thrive during periods of loose financial conditions. Until then, the price of Dogecoin is unlikely to make a breakthrough increase. Cryptocurrency investors should view the current market environment as a good time to gradually increase the amount of DOGE they are holding.