Dogecoin to $3.88? This Historical Pattern Signals a Potential Breakout

Dogecoin has traded relatively flat over the past month but remains up 13.6% over the past three months, with traders identifying historical patterns that could signal a major breakout.Despite a modest 1.8% price decline, Dogecoin saw $1.7 million in long liquidations on Oct. 12, the highest in three days, suggesting leveraged bullish traders faced renewed pressure.Why $3.88 May Be a TargetProminent crypto trader DonWedge highlighted a recurring pattern on Dogecoin’s monthly chart, where previous resistance levels have consistently turned into support.The trader identified three historical support shelves, noting that each former ceiling became the next floor without exception.The meme coin is now trading near its newest support structure, which DonWedge compared to the 2021–2023 consolidation channel that preceded its previous major rally.Based on this historical pattern, the trader projected a potential breakout target of $3.88, representing the next major price level in the long-term structure.However, the bullish scenario depends on Dogecoin breaking out of its current channel. Losing the established support shelf would invalidate the setup.Crypto trader Tardigrade noted Dogecoin’s pattern of establishing higher cyclical floors before major rallies, citing historical gains of 167x and 365x.Will An Altcoin Rally Could FollowCrypto analyst Sweep sees Dogecoin having reclaimed a key support zone, a development that preceded rallies exceeding 15% on the previous two occasions.Sweep also highlighted Dogecoin’s historical role as an early , suggesting renewed strength could signal broader cryptocurrency market momentum.A sustained rebound could therefore have implications beyond DOGE, particularly if speculative capital begins rotating into other altcoins.Image: Shutterstock Read Also: