Since hitting a yearly high of $0.2288 on March 28, Dogecoin’s price has fallen more than 54%. Since its all-time high in May 2021, DOGE’s price has fallen more than 85%. Despite this decline, crypto analyst Cryptorphic (@Cryptorphic1) suggests that a bullish reversal could be just around the corner.
Cryptorphic has done an in-depth analysis of the DOGE/USDT weekly chart, suggesting that Dogecoin could see a massive 900% price surge. This bullish forecast is backed by a combination of seven factors, ranging from technical indicators to broader market trends.
What needs to happen for Dogecoin to skyrocket by 900%?
The chart provided by the analyst shows Dogecoin’s performance since February 2021, which is bounded by a tightly coupled channel. This channel was defined by consecutive lower highs and higher lows, forming a predictable pattern for over 1,127 days until a notable change occurred. Based on this, Cryptorphic reveals seven arguments for an ultra-bullish view on DOGE.
#1 Breakout Above the Accumulation Channel
In the last week of February 2024, DOGE experienced a breakout characterized by a massive candlestick that took it beyond the upper boundaries of this long-term channel. Following this breakout, Dogecoin entered a retest phase of the previous channel’s upper boundary, which is a crucial phase to confirm the strength and potential longevity of the breakout.
The breakout is significant because it occurs after more than three years of price consolidation in a range. This long accumulation period often sets the stage for a large price move after the breakout. A successful retest usually validates the breakout and may signal a continuation of the uptrend.
#2 Strong Weekly Doji Candle
Another key aspect of what is to happen is “the formation of a strong weekly doji, signaling significant buying pressure from the bulls.” Such a candle on a weekly chart will be characterized by 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”
Elon Musk’s mention of Dogecoin, who may be promoting DOGE as a means of payment on X after the presidential election, could add to the speculative sentiment. Musk’s tweets have had an extremely strong impact on the price of DOGE in the past, but things have been very quiet in recent months. “Elon Musk will likely promote it after the presidential election this year,” the crypto analyst suggests.
#4 Moving Averages
From a technical perspective, Dogecoin’s current position above the 200-day exponential moving average (EMA) suggests strong long-term bullish sentiment. In contrast, its struggle to hold above the 100-day EMA points to immediate trouble. Thus, a decisive close above the 100-day EMA could be another major sign of a DOGE bull run.
#5 Relative Strength Index
The Relative Strength Index (RSI), currently below 45, supports the theory that “there is plenty of room for growth” without pushing the asset into overbought territory. This is crucial because it suggests that despite the 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 trend of meme coins outperforming more fundamentally sound projects, indicating market preferences that could favor DOGE in a bull run. This should continue. “MEME coins have been outperforming solid projects this season, and I believe DOGE will lead this bull run,” the analyst states.
#7 Weekly Close Above $0.11
Overall, the analyst says “many indicators point to a bullish trend on the horizon.” He plans to maintain his Dogecoin position, with an eye toward buying dips, a strategy that uses potential volatility to accumulate at lower prices.
A definite trigger point for a bullish acceleration is a weekly close above $0.11 in the liquidity gray zone. A close above this threshold could catalyze the expected rally.
At the time of publication, DOGE quotes were $0.10432.
