Dogecoin (DOGE) is attempting to establish a stronger foundation on longer-term charts. Analyst Cantonese Cat has identified a potential inverse head-and-shoulders pattern forming on the daily chart, with the price consolidating just below a key resistance level while holding above a nearby support zone.
Dogecoin Breakout Could Target $0.19
In a daily chart shared on January 16, Cantonese Cat outlined the inverse head-and-shoulders pattern: a left shoulder in early December, a deeper low (the “head”) near $0.115 in late December, and a potential right shoulder forming as the price pulls back from its early-January spike.
A crucial support area, labeled a “Buy order block,” is highlighted between roughly $0.1250 and $0.1350. The price is currently retesting the top of this zone, positioning it in the classic “right shoulder” area of the pattern.
Immediate resistance sits in a grey band around $0.149–$0.152. For the bullish pattern to be confirmed, DOGE needs to break and hold above this level, which has previously acted as a selling area.
Calculating the Pattern Target
Using the inverse head-and-shoulders structure, the price target is calculated by taking the depth of the pattern and projecting it upward from the breakout point. The neckline (resistance) is near $0.151, and the head low is near $0.116. This gives a pattern height of about $0.035, projecting a target near $0.186.
This target aligns with a significant overhead supply (resistance) zone, which begins around $0.175 and extends toward $0.19. This would be the first major test for any confirmed breakout.
2-Day Chart Shows Building Momentum
The bullish outlook is supported by the 2-day Bollinger Bands. DOGE is currently trading above the basis (middle band) around $0.1343. The upper band is near $0.1526, and the lower band is near $0.1160.
Cantonese Cat noted that the price wanting to “hang out at the top part of the Bollinger band” can be a momentum signal. Sustained trading in the upper half of the bands suggests sellers may be losing control, even before a clear breakout above horizontal resistance occurs.
However, the 2-day chart also underscores the immediate challenge: the upper Bollinger Band coincides with the same $0.15–$0.152 resistance zone on the daily chart. Therefore, the bullish case requires DOGE to not only hold support but also decisively break above this key area.
Key Levels to Watch
Bullish Scenario: If DOGE defends the $0.1250–$0.1350 support zone and breaks above the $0.149–$0.152 resistance, the inverse head-and-shoulders pattern would gain validity. The next targets would be the supply zones near $0.175 and the upper-$0.18s.
Bearish Scenario: If the price loses the $0.1250–$0.1350 support block, the pattern would weaken significantly. Attention would then shift back toward the lower Bollinger Band near $0.1160 and the late-December lows.
At the time of writing, DOGE is trading at $0.139.
Frequently Asked Questions
Dogecoin Inverse Head Shoulders Pattern FAQs
Beginner Questions
What is an inverse head and shoulders pattern
Its a chart pattern that often signals a potential trend reversal from a downtrend to an uptrend It looks like three troughs with the middle one being the lowest and the two outside ones being higher and roughly equal in depth
Why is this pattern important for Dogecoin
If confirmed it suggests that selling pressure may be exhausted and buyers could be gaining control potentially leading to a significant price increase
What does a break above 015 mean
It means the price of Dogecoin needs to rise and close above the 015 level on a trading chart This acts as a confirmation signal that the pattern is valid and the predicted upward move is beginning
Is this a guarantee that Dogecoins price will go up
No Chart patterns are not guarantees they are indications of probability based on historical market behavior Many factors can invalidate the pattern
As a beginner what should I do if I see this news
Use it as an opportunity to learn about technical analysis Do not make investment decisions based solely on one pattern Always do your own research and consider your risk tolerance
Intermediate Advanced Questions
What timeframes should I be looking at to see this pattern
The patterns reliability generally increases on longer timeframes such as daily or weekly charts Check which specific chart the analysis is referencing
What is the neckline in this pattern and where is it
The neckline is a resistance level drawn by connecting the high points of the two peaks between the three troughs In this case the analysis states the neckline is at the 015 level
What is the projected price target if the pattern confirms
A common method is to measure the distance from the heads low to the neckline and project that distance upward from the breakout point The target would be calculated as 015 You would need to know the exact low of the head to calculate this
What volume confirmation should I look for
A valid breakout should