Dogecoin forms an inverted head and shoulders pattern to suggest a rapid reversal towards the 0.25 USD level.

Dogecoin has moved into a negative price zone in the seven-day timeframe, with the meme coin currently down 6.11% over the past week. However, this price action has led to the emergence of a bullish pattern on the 1-hour candle timeframe chart. The constructive formation following a corrective fall has pushed Dogecoin down to $0.215 briefly, but recent trades have seen higher lows and stronger support levels. This, in turn, has led to the formation of an inverted head and shoulders pattern indicating quick bullish targets for Dogecoin's price. Analysts identify an inverted head and shoulders pattern Cryptocurrency analyst Klejdi Cuni posted a technical outlook on social media platform X, highlighting an inverse head and shoulders pattern on the DOGE/USDT chart on the 1-hour candle timeframe. The setup includes three distinct bottoms, with the middle bottom being the deepest and forming on May 25th. On the other hand, the right shoulder formed between May 23rd and May 24th, leading to what could be understood as a short-term bullish reversal. According to analysts, this inverse head and shoulders pattern is a smaller model, making it more suitable for short-term traders looking for quick movements. At the time of writing, Dogecoin is still in the process of completing the left shoulder, as it is currently testing the resistance neckline around $0.228. A breakout above this neckline with sufficient volume confirmation could trigger a rapid bullish move. Short-term bullish target for Dogecoin If the inverted head and shoulders bullish setup unfolds as expected, analysts predict that the price of Dogecoin will spike first to the zone of $0.239. This level served as a support level for several hours on May 22, before eventually being broken and acting as a resistance level in a brief bullish attempt late on May 23. Therefore, this area will be very important to note, as a successful breakout thereafter will open the door to the next target. The next short-term price target if Dogecoin successfully crosses the $0.239 level of $0.25. While modest compared to some of the more positive long-term and medium-term forecasts, this level is important for another reason. A rally to $0.25 would be a complete rebound to Dogecoin's most recent local peak in May. This, in turn, could be the start of a price rally that continues to the higher price towards $0.3 and beyond.

The forecast chart above outlines a step-by-step movement, where the breakout leads to an immediate bullish action, followed by consolidation before a secondary branch pushes the price of Dogecoin to $0.25. However, as with any pattern, confirmation is crucial. Failing to hold the breakout zone or breaking below the right shoulder, currently at around $0.222, would weaken the bullish outlook and could lead to a retest of $0.21.