Dogecoin Targets $0.26 and $0.32 After Falling Wedge Breakout Pattern
- Dogecoin broke out of a falling wedge pattern and confirmed an inverse head and shoulders structure.
- The bullish formation sets short term and long term price targets of $0.26 and $0.32 respectively.
- Holding above the $0.22 neckline could keep momentum strong toward both upside target levels.
Dogecoin (DOGE) traded at $0.22460 after hitting a high of $0.22512, following a breakout from a confirmed falling wedge formation. The move comes after the price established a clear inverse head and shoulders structure, signaling potential upside targets at $0.26000 and $0.32000. This technical setup reflects a shift from bearish consolidation into a possible bullish continuation phase.
Breakout from Falling Wedge Formation
The four-hour DOGE/USDT perpetual futures chart on MEXC shows a falling wedge pattern that developed in late July. This pattern started from highs above $0.30000 and extended into early August, compressing price action into a narrowing downtrend channel.
On August 1, Dogecoin formed a distinct bottom at $0.20000, marking the “Head” in the subsequent inverse head and shoulders pattern. The falling wedge breakout followed soon after, with price action moving decisively above the upper resistance trendline.
Volume analysis during the breakout indicated increased market participation, supporting the bullish technical bias. Following this move, DOGE rallied toward the neckline resistance of the inverse head and shoulders pattern, setting the stage for further advances.
Inverse Head and Shoulders Structure
The chart outlines a well-defined inverse head and shoulders pattern, with the left shoulder forming in late July, the head in early August, and the right shoulder in the second week of August. This structure typically signals a potential trend reversal from bearish to bullish.
After breaking above the neckline near $0.22000, DOGE moved toward the first target zone of $0.26000. This level aligns with the measured move projection from the pattern’s height, offering a realistic short-term objective for traders.
The second target, near $0.32000, represents the full extension of the pattern’s potential, based on the height from head to neckline. Sustained momentum toward this level would require continued buying pressure and supportive market conditions.
Targets and Key Levels Ahead
As of the latest session, DOGE is consolidating near $0.22460, holding above the neckline support zone. Maintaining price action above this level could keep the bullish scenario intact, with the $0.26000 and $0.32000 targets still in focus.
However, a drop below neckline support could invalidate the immediate bullish setup, returning the market to a consolidation range between $0.20000 and $0.22000. Traders are watching this level closely for signs of either renewed buying or selling pressure.
Market participants are asking a pivotal question: will Dogecoin sustain its bullish structure long enough to challenge the $0.32000 target?
The technical chart offers a clear roadmap — a confirmed breakout from a falling wedge, an established inverse head and shoulders, and two defined upside objectives. Whether DOGE can deliver on this setup depends on its ability to hold critical support and attract strong follow-through buying in the sessions ahead.
