Dogecoin Power Of 3 Pattern Enters Distribution Phase: Massive Bull Run Incoming?
Dogecoin appears to be finally Get rid of long-term integration phase and The return of greed iEnter the cryptocurrency market. Interestingly, technical analysis of the Dogecoin price chart suggests that this greed is about to propel the meme coin into a parabolic rally leading to new all-time highs.
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This rally comes from predictions of the “Power of 3” concept, with recent price action pushing Dogecoin into a distribution phase.
The power of three patterns portends bullish momentum for Dogecoin
The Power of 3 pattern is a technical analysis concept that divides the price cycle into three distinct phases: accumulation, manipulation, and distribution. Price performance during these stages varies. The accumulation phase is the first phase of the pattern and is characterized by consolidation near recent highs. Price action is strong.
Next comes the manipulation phase, where price action breaks below the support level of the accumulation phase and starts trading in a range just below that support level. The distribution phase is the final phase and is characterized by a strong upward price breakout as momentum builds and a large number of players enter the market.
according to technical analysis According to Dogecoin price action from cryptocurrency analyst Trader Tardigrade, two consecutive power-of-3 patterns have appeared on the DOGE daily chart. The first pattern is fully completed and in effect from March to November 2024, with subsequent distribution phases pushing Dogecoin to multi-year highs.
The second mode begins shortly after the first mode ends and is now nearing its final stage. The accumulation phase of this pattern lasted from early November to mid-December, during which time Dogecoin rejected $0.48 and began to consolidate between $0.48 and $0.4. This is Next comes the manipulation phasewhich lasted from mid-December into the first few weeks of January after Dogecoin fell below $0.4
The recent positive price action suggests that Dogecoin has now exited the manipulation phase and is now in the distribution phase. If history repeats itself, Dogecoin could experience another parabolic rise from here, driven by increased market participation and growing bullish sentiment.
Breaking Consolidation: Parallels in 2017
Trader Tardigrade expects the distribution phase to push Dogecoin prices above the current all-time high of $0.7316 and eventually above the $1 mark. The final target price is approximately $1.3, which represents a 225% upside from the current price.
tardigrade An analogy was also made The relationship between Dogecoin’s current trend and its price action since 2017. He noted that Dogecoin has broken above the consolidation trend line in a manner similar to the breakout that preceded the 2017 rally. If history repeats itself, Dogecoin May reach local peaks above $3 2025.
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As of this writing, Dogecoin is trading at $0.3975.
Featured images from Pexels, charts from TradingView
