Dogecoin Signals Surge Potential After Spring Action

• Dogecoin has completed a Spring Action at the lower trendline of a broadening wedge—the same formation that appeared just before its significant 2024 surge. This Wyckoff-style shakeout below support typically marks the final phase before accumulation shifts into markup, suggesting a potential volatility expansion.

• The chart reveals two Spring Actions at nearly identical structural locations: the 2024 formation that triggered a substantial rally, and the current one developing now. This repeated pattern historically signals strong upside potential once a directional breakout occurs.

• The technical setup presents a clear risk-reward scenario. If DOGE maintains support within the wedge, it could restore market confidence and attract renewed capital flows, particularly from traders expecting a repeat performance. A confirmed breakout would likely boost volumes and strengthen sentiment across the memecoin sector.

• However, failure to hold the wedge’s lower boundary would invalidate the bullish case, potentially triggering rapid downside as leveraged positions unwind. This would reduce short-term liquidity and dampen speculative interest, delaying any meaningful recovery.

• Dogecoin now sits at a critical juncture within a historically powerful pattern. The market is watching closely to see whether DOGE will follow the same explosive trajectory as its previous cycle. If the Spring Action holds, another major move could be on the horizon—a scenario that has traders paying close attention.

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Source: Trader Tardigrade