Peter Smith
⬤ Dogecoin's price action is catching traders' eyes again after technical analysts spotted a potentially bullish reversal pattern forming on the daily timeframe. DOGE appears to be developing a Three Drives Pattern—a formation that typically signals trend exhaustion and a possible momentum shift after sustained selling pressure.
⬤ The chart shows three separate downward moves, each followed by corrective bounces that suggest weakening selling momentum. The third drive looks close to completion, with Dogecoin stabilizing near recent lows. This setup aligns with classic Three Drives patterns, where fading downside pressure often hints at a directional change ahead.
⬤ While DOGE has been locked in a clear downtrend with lower highs and lows, the current pattern suggests the decline might be shifting into consolidation rather than continuing downward. If price holds support near the third drive and buying interest picks up, a corrective recovery could be on the horizon.
⬤ What matters here is what this means for Dogecoin's immediate direction. A confirmed bounce from current levels could signal changing sentiment and open the door for upside movement. But if support fails to hold, the pattern breaks down and the downtrend stays intact. As a sentiment-driven crypto asset, traders are watching this technical setup closely to see if selling pressure is finally losing steam.
Peter Smith
