Dogecoin’s ‘Power of 3’ Pattern Suggests Imminent Bull Run: A Look at the Distribution Phase

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It appears that Dogecoin has broken free from its prolonged period of stability, as market enthusiasm, or “greed,” returns to the cryptocurrency sector. Remarkably, technical analysis suggests this renewed greed could propel Dogecoin into a steep upward trend, potentially reaching unprecedented new peak prices.

This rally appears to be based on the “Power of 3” theory, as the latest market movements have moved Dogecoin into the selling or distribution stage.

Power Of 3 Patterns Point To Bullish Momentum For Dogecoin

The Power of 3 pattern is an investment strategy idea that splits the price trend into three unique stages: accumulation, manipulation, and distribution. Each stage has its own distinct price behavior. The initial phase, known as accumulation, is marked by a period of stabilization near a recent peak following a robust upward price movement.

Afterward comes the manipulation stage, during which the price movement falls beneath the accumulation phase’s support level and trades within a range directly below this level. The distribution stage follows, marked by a significant upward breakout in price as buying momentum grows and a large number of traders join the market.

As per Trader Tardigrade’s analysis based on technical study of Dogecoin price movements, two successive Power of 3 patterns have surfaced on the DOGE daily chart. The first pattern has been fully realized and its effects were observed between March and November 2024, leading to a distribution phase that propelled Dogecoin to record highs over several years.

The second sequence commenced not long after the first ended and is now approaching its final leg. From early November until mid-December, the buildup stage for this pattern saw Dogecoin being rejected at approximately $0.48 before it started consolidating around $0.48 to $0.4. Subsequently, a phase of manipulation took place from mid-December through the opening weeks of January, following Dogecoin’s drop below $0.4.

Lately, it appears that Dogecoin’s price has climbed out of its controlled stage (manipulation phase) and is now in the stage where coins are being spread among more hands (distribution phase). If past trends continue, Dogecoin might witness another steep upward surge starting from this point, fueled by heightened market activity and a surge in optimistic attitudes.

Breaking Out Of Consolidation: The 2017 Parallel

As a researcher, I foresee that the dissemination phase could propel the value of Dogecoin beyond its present record high of $0.7316 and even surpass the symbolic $1 threshold. My projected final price point lies around the $1.3 mark, which equates to a substantial 225% growth from our current pricing level.

Similarly to the price movement of Dogecoin in 2017, Tardigrade observed that it’s currently breaking free from a long-term trendline pattern, much like before its significant surge in value. If history follows a similar path, Dogecoin could potentially reach a local high of more than $3 by the year 2025.

At the time of writing, Dogecoin is trading at $0.3975.

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2025-01-20 00:04