The Dogecoin price has shown a clear break from a bullish pattern with great conviction. The uptrend has been without hurdles so far, but the meme coin is currently facing a significant barrier that is likely to prevent further upward movement.

However, a successful shift from this hurdle to a foothold could hold the key to a massive and exponential build-up to the OG dog-themed cryptocurrency.

Bulls are making a strong comeback propelling the Dogecoin price

The downward trend that occurred from September 29, 2021 to March 22, was a blessing in disguise for the Dogecoin price action. This price action produced three distinctive lower highs and lower lows, which when connected using trendlines reveal the formation of a bearish wedge pattern.

This technical formation predicts a 34% increase to $0.178, obtained by adding the distance between the first swing high and swing low to the breakout point at $0.132. On March 24, Dogecoin price moved along the upper trendline of the falling wedge, signaling a breakout. Since then, the meme coin is up 18%, but bullish momentum seems to have capitulated due to the presence of the 100-day Simple Moving Average (SMA) at $0.144.

Going forward, investors can set the Dogecoin price to consolidate below this hurdle. However, a successful flip of this resistance barrier to a support level is vital for bulls to reach their forecasted target of $0.132.

After marking the target at $0.132, there is a good chance DOGE will move sideways before hitting the next major hurdle at $0.185, or the 200-day SMA. If momentum wears out, the advantage will be limited to this level, but if the bulls converge, DOGE is likely to make a run on the control volume for 2021 and 2022 at $0.260.

This level will be a barrier that bulls are unlikely to cross as most of the volume for 2021 and 2022 was traded.

DOGE Perpetual Futures | Source: Tradingview

This nearly 80% increase to $0.260 is supported by the 365-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors who have purchased DOGE tokens in the past year.

While a negative reading below -10% often indicates that holders are at a loss in the short term and the holders are taking advantage in the long term to buy the tokens at a discount. That is why a value below -10% is often referred to as an ‘opportunity zone’.

Currently, the 36-day MVRV is hovering at -38%, indicating that a majority of holders are at a loss. Therefore, long-term holders are likely to build DOGE at a discount, further supporting the outlook described from a technical point of view.

MVRV ratio | Source: Tradingview

This post DOGE: This bullish pattern on the chart bodes well for the OG dog-themed coin

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