Can DOGE Hit New ATH in May?

Renowned analyst Rekt Capital recently carried out Dogecoin (DOGE) technical analysis reveals important insights into the potential trajectory of the popular meme coin. This analysis highlights that DOGE has failed to sustain the important monthly retest of the $0.20 level, leading to a pullback into the confluence support area.

With DOGE falling into the black to red range, a recovery above the range high looks unlikely despite the fact that there is time for such a move to occur. Recto Capital predicts that DOGE is likely to remain consolidated within this range for some time, and that the range-low region will be the most attractive trading opportunity for investors.

Also Read: Solana Firmly Above $155: Can SOL Hit New ATH In May?

Possibility of head-and-shoulders formation in Dogecoin

Source: Rekt Capital

While DOGE has managed to maintain a position above the old Bull Flag bottom, Rekt Capital is drawing attention to the Head and Shoulders (H&S) formation that could develop in the future.

If DOGE rebounds from the bottom of the old bull flag to the top of the old bull flag but refuses and forms a right shoulder, the subsequent loss of the bottom of the old bull flag (which acts as the neckline) will cause this H&S formation to May be verified.

In such a scenario, the price of DOGE could fall to a range low, but this time it would involve the candle body rather than just the wick.

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Rekt Capital’s technical analysis provides valuable insights for investors and traders considering positions in Dogecoin. Strong buy-side interest in Range Low suggests this area could be a lucrative entry point for those looking to accumulate DOGE.

However, if the H&S formation is confirmed, it may lead to further downside pressure, so caution should be taken regarding the possibility of a head-and-shoulders pattern developing. Nevertheless, DOGE could move to a new ATH in May if market conditions turn bullish. However, if the market shows a bearish performance, the probability of such an event occurring will be very low.

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