Cryptocurrency analyst Trader Tardigrade has drew attention to an intriguing phenomenon in Dogecoin’s price movement when it starts trading within a certain range. According to a technical analysis by a cryptocurrency analyst, Dogecoin is currently in a manipulation phase. Interestingly, he noted that the king of meme coins has been following a Power of Three (PO3) pattern over the past few weeks, which indicates an upcoming bullish wave.

Dogecoin matching power pattern 3

The Power Of 3 formation is an intriguing price formation in technical analysis that always ends in a robust, bullish move. This pattern represents three critical phases; Accumulation, manipulation and distribution that together define market cycles.

In the case of Dogecoin, it remained the leading meme cryptocurrency on the path of a downward trend from the second week of December, with significant adjustments which leads to the break below $0.30 threshold. As noted by Trader Tardigrade, this decline is part of a Power Of 3 pattern, which means it is very crucial hence the price raise.

According to Trader Tardigrade, using a daily candlestick chart, Dogecoin’s accumulation phase lasted from early November to mid-December, after a crazy rally that lasted from October to November. During this period of accumulation, Dogecoin’s price has strengthened in a narrow range, signaling tender activity but significant buying interest even as some holders made profits.

#Dogecoin appears to follow the Power of Three (PO3) pattern 🔥$Doga has recently moved from a long consolidation in the accumulation phase, lasting from early November to mid-December, to a manipulation phase. The distribution phase is then expected to… pic.twitter.com/qvEYCQbUly

— Trader Tardigrades (@TATrader_Alan) December 24, 2024

However, the recent price action over the past two weeks has seen Dogecoin’s price enter a manipulation phase. This phase was characterized by a edged downward movement as a result of increased volatility, particularly on December 20, when the price of Dogecoin briefly dropped to $0.267. However, this phase may be the prelude to the last and most explosive stage of the scheme (the distribution phase).

Distribution phase for Dogecoin price to reach recent all-time highs

Power Pattern 3 ends in the distribution phase, which is characterized by a robust upside impulse. In the case of Dogecoin, Trader Tardigrade predicted that this phase would push its price to recent all-time highs above the current high of $0.7316. Specifically, the analyst noted a price movement that would push Dogecoin to $0.95 during the distribution phase.

At the time of writing, Dogecoin is trading at $0.332, having bounced around 3.5% in the last 24 hours. Reaching the $0.95 target would mean a price raise of approximately 186% from the current price. As for the timeline, the analyst indicated the first two weeks of 2025 as a probable period for this bullish move to come true.

This the forecast is consistent with broader market expectations for Dogecoin, with the participation of many investors and analysts expecting a break above $1. While the $0.95 target stops tiny of this milestone, it serves as a compelling indication of continued bullish sentiment regarding Dogecoin.

Featured image created with Dall.E, chart from Tradingview.com