Dogecoin ‘Power Of 3’ Pattern Enters Distribution Phase: Massive Bull Run Incoming?

Scott Matherson

4 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Dogecoin seems to have finally moved past its extended consolidation phase with the return of greed sentiment into the crypto market. Intrestingly, technical analysis of the Dogecoin price chart shows that this greed sentiment is about to push the meme coin into a parabolic rally that would send it to new all-time highs.

This rally is from a projection of the “Power of 3” concept, with recent price action pushing Dogecoin into the distribution phase.

Power Of 3 Patterns Point To Bullish Momentum For Dogecoin

The Power of 3 pattern is a technical analysis concept that divides the price cycle into three distinct phases of accumulation, manipulation, and distribution. These phases are each distinct in their price performance. The accumulation phase, which is the first phase of the pattern, is characterized by a consolidation around a recent high after a strong upwards price action.

Next is the manipulation phase, where price action breaks below the support of the accumulation phase and starts to trade within a range just below this support. The distribution phase is the last phase, which is characterized by a strong price breakout in the upward direction as momentum builds and a large number of participants enter the market.

According to technical analysis of the Dogecoin price action by crypto analyst Trader Tardigrade, two consecutive Power of 3 patterns have appeared on the DOGE daily chart. The first pattern has been fully completed and played out during the months of March to November 2024, with the ensuing distribution phase pushing Dogecoin to multi-year highs.

The second pattern began shortly after the first one concluded and is now nearing its final stage. The accumulation phase for this pattern lasted from early November to mid-December, during which Dogecoin rejected at $0.48 and began consolidating around $0.48 to $0.4. This was followed by the manipulation phase, which persisted from mid-December through the first weeks of January after Dogecoin broke below $0.4

DOGE is currently trading at $0.37. Chart: TradingView

Recent positive price movements show that Dogecoin has now exited the manipulation phase and is now in the distribution phase. If history were to repeat itself, Dogecoin could experience another parabolic rally from here, driven by increased market participation and growing bullish sentiment.

Breaking Out Of Consolidation: The 2017 Parallel

Trader Tardigrade projected that the distribution phase will send the Dogecoin price above its current all-time high of $0.7316 and finally above the $1 mark. The final price target is around $1.3, which represents a 225% increase from the current price.

Tardigrade also drew parallels between Dogecoin’s current movement and its price action from 2017. He noted that Dogecoin has broken out from a consolidation trendline in a manner similar to a breakout before its rally in 2017. If history repeats itself, Dogecoin could reach a local peak above $3 in 2025.

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

Featured image from Pexels, chart from TradingView

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.