Dogecoin (DOGE) is attracting the attention of traders as a rare diamond bottom reversal pattern forms on the charts, suggesting that the meme coin could be gearing up for a significant breakout.

Trader Tardigrade, a well-known analyst, highlighted the pattern in a recent X post, pointing out that such structures typically appear around market bottoms and are often precursors to explosive upward moves. The analyst noted that Dogecoin’s current setup mirrors previous diamond bottom patterns that led to substantial rallies in other assets.

Meanwhile, Galaxy, another prominent trader, echoed the bullish sentiment, pointing to the emergence of higher highs and higher lows on Dogecoin’s weekly chart. According to Galaxy, the meme coin is beginning to recover from a 600-day accumulation phase, suggesting that a major rally could be on the horizon.

“The accumulation phase has laid a solid foundation for Dogecoin to reclaim higher levels,” Galaxy stated.

Can Dogecoin Break Out to $0.28?

Despite the promising technical structure, Dogecoin’s price action remains vulnerable to macroeconomic factors. The Federal Reserve’s latest policy statement underscores the growing risk of stagflation, as President Trump’s trade war with China continues to exert upward pressure on inflation while stifling economic growth.

Bitcoin’s resilience amid economic uncertainty has further underscored its status as a digital safe haven, with the flagship cryptocurrency nearing the $100,000 mark. If Bitcoin successfully retests its previous all-time high of $108,000, it could create a risk-on environment that fuels speculative rallies in altcoins like Dogecoin.

For Dogecoin, the key level to watch is $0.20. A confirmed breakout above this resistance could pave the way for a swift run to $0.28, potentially driven by renewed meme coin hype and broader market optimism. However, the rally will require a strong catalyst, such as a cooling inflation report or a signal from the Fed regarding potential rate cuts.

Until then, the diamond bottom pattern serves as a potential accumulation zone for long-term DOGE holders, especially as the technical setup continues to solidify.

Solaxy (SOLX) – A Compelling Alternative to Meme Coins?

While Dogecoin attempts to mount a recovery, a promising new project called Solaxy (SOLX) is making waves in the Layer 2 ecosystem.

Built on Solana, Solaxy aims to resolve network congestion issues, enabling faster transactions and improved scalability. The project has already raised $33 million in its presale, with SOLX tokens currently priced at $0.001712 — an attractive entry point for early investors.

Unlike meme coins that rely on speculative hype, Solaxy offers tangible utility, with staking rewards reaching up to 123% APY. This income-generating potential could attract long-term investors seeking stable returns amidst market volatility.

Moreover, as Solana continues to gain traction as a leading blockchain, Solaxy’s focus on multi-chain compatibility positions it for broader adoption and sustainable growth, making it a compelling alternative for investors looking beyond meme coins.