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Since hitting a yearly high of $0.2288 on March 28, Dogecoin has fallen by more than 54%. From its all-time high in May 2021, DOGE is down more than 85%. Despite this decline, cryptocurrency analyst Cryptorphic (@Cryptorphic1) suggests that a bullish reversal could be on the horizon.
Cryptorphic conducted an in-depth analysis of the DOGE/USDT weekly chart, suggesting that Dogecoin could see a massive 900% price surge. This bullish prediction is based on a combination of seven factors, ranging from technical indicators to broader market trends.
What would it take for Dogecoin to surge 900%?
The chart shared by the analyst shows Dogecoin’s performance since February 2021, which is confined to a tightly bound channel. This channel is defined by consistent lower highs and higher lows forming a predictable pattern for over 1,127 days, until a significant change occurred. Based on this, Cryptorphic reveals seven arguments for being extremely bullish on DOGE.
#1 Breakout above accumulation channel
In the last week of February 2024, Dogecoin experienced a breakout that featured a massive candlestick that pushed it beyond the upper boundary of this long-term channel. Following this breakout, Dogecoin entered a retest of the upper boundary of the previous channel, a crucial phase to confirm the strength of the breakout and its potential longevity.
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The breakout is very important because it occurs after more than three years of price consolidation within a defined range. This long period of accumulation often sets the stage for a massive price move once the breakout occurs. A successful retest usually confirms Hacking authority This may indicate a continuation of the upward trend.
Strong Weekly Doji Candle #2
Another key aspect of what should happen is “a strong weekly doji candlestick pattern, indicating significant buying pressure from bulls.” Such a candlestick on a weekly chart will feature a small body with a long lower shadow, indicating that the bulls have won the tug of war between buyers and sellers.
#3 “Musk Effect”
Dogecoin mentioned by Elon MuskElon Musk’s promotion of DOGE as a means of payment on X after the presidential election could increase speculative sentiment. Musk’s tweets have had a very strong impact on DOGE’s price in the past, but things have calmed down considerably in recent months. The crypto analyst speculates that “Elon Musk is likely to promote it after this year’s presidential election.”
#4 Moving Averages
Technically, Dogecoin’s current position above the 200-day exponential moving average (EMA) indicates a strong bullish sentiment in the long-term perspective. Conversely, its struggle to maintain a level above the 100-day EMA indicates immediate challenges. Hence, a decisive close above the 100-day EMA could be another key sign of DOGE’s upside.
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#5 Relative Strength Index
The Relative Strength Index (RSI), currently below the 45 level, supports the theory that there is “plenty of room to grow” without pushing the asset into overbought territory. This is crucial because it suggests that despite recent gains, the asset is not yet at risk of a major sell-off due to overvaluation, according to this metric.
#6 Market Trends
The analysis also highlights the current situation. trend where memecoins “MEME coins are fundamentally outperforming strong projects, indicating a market bias that could favor DOGE in a bullish cycle. This needs to continue. MEME coins have outperformed strong projects this season, and I believe DOGE will lead the charge in this bullish trend,” the analyst says.
#7 Weekly close above $0.11
Overall, the analyst claims that “multiple indicators suggest that there is an upside move on the horizon.” He plans to maintain a position in Dogecoin, with the intention of buying on dips — a strategy that takes advantage of potential volatility to accumulate lower prices.
The trigger point for a bullish acceleration is a weekly close above $0.11 in the grey liquidity zone. A close above this threshold could trigger the expected upside.
At the time of publishing this report, DOGE was trading at $0.10432.
Featured image created using DALL.E, chart from TradingView.com
