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Dogecoin (DOGE), the popular meme cryptocurrency, is showing strong signs of an imminent price breakout as technical indicators point to the formation of an Ascending Triangle on the 4-hour chart. This bullish pattern, coupled with a rebound from an oversold Relative Strength Index (RSI), suggests that a significant price rally could be on the horizon.
With increased buying pressure and historical data aligning with past bullish trends, could this signal a repeat of Dogecoin’s 2021 parabolic run? Let’s dive into the analysis.
Dogecoin Eyes Breakout With Ascending Triangle Pattern
An Ascending Triangle is a classic bullish continuation pattern that forms when an asset makes higher lows, creating an upward-sloping trendline, while price remains constrained below a horizontal resistance level. When the price eventually breaks above the resistance, it often triggers a strong upside move.
Crypto analyst Trader Tardigrade has identified this pattern on Dogecoin’s 4-hour chart, with a key resistance level at $0.334. The price action shows a series of higher lows, indicating that buyers are gaining strength. If DOGE breaks past $0.334, analysts predict a sharp price surge to the $0.355–$0.360 range.
Adding to the bullish case, the Relative Strength Index (RSI)—a key momentum indicator—recently dipped below 30%, entering oversold territory. This often suggests that selling pressure has been exhausted and a price reversal is likely. The RSI has since rebounded and is now gaining momentum, indicating increased buying activity. If this momentum continues, Dogecoin could soon push toward overbought zones above 70%, reinforcing the possibility of a strong breakout.
Potential Scenarios for DOGE Price Action
- Bullish Breakout:
- If Dogecoin breaks above $0.334, it could trigger a sharp rally toward $0.355–$0.360.
- Strong momentum could extend gains further, potentially revisiting previous highs.
- Rejection at Resistance:
- A failure to break above $0.334 could lead to a pullback toward the ascending trendline for another attempt.
- A successful retest could provide a stronger foundation for a future breakout.
What’s Next for Dogecoin?
Despite recent market fluctuations and reports from CoinMarketCap showing a 6% price decline over the past week, Dogecoin remains resilient. Many analysts believe DOGE is gearing up for a major move, with some predicting that a new all-time high (ATH) is within reach.
Prominent crypto analyst Coinvo, who boasts a following of over 324,000, has shared a long-term DOGE price analysis that points to a potential massive rally. His chart highlights two critical historical resistance levels:
- $0.015 Resistance Breakout:
- In early 2021, DOGE broke past $0.015, igniting a parabolic rally to $0.6.
- $0.6 All-Time High Retest:
- Dogecoin hit its all-time high (ATH) of $0.6 in May 2021.
- The price has since undergone a prolonged downtrend and consolidation (2022–2023).
- Now, the chart suggests a similar bullish trajectory to 2021, hinting at a possible revisit of previous highs.
As of now, DOGE is trading at $0.33, with increasing market interest and strong technical signals pointing toward renewed bullish momentum. If it follows historical patterns, Dogecoin could be on track for another explosive rally, similar to its past meme-fueled bull runs.
Key Factors That Could Influence DOGE’s Price Action
- Bitcoin & Market Sentiment: The broader crypto market’s performance, especially Bitcoin’s price movement, could impact DOGE’s trajectory.
- Elon Musk Factor: The Tesla CEO has historically influenced Dogecoin’s price through tweets and endorsements. Any new developments related to X (formerly Twitter) or Tesla could drive demand.
- Retail & Institutional Adoption: Increased mainstream adoption and integration of Dogecoin as a payment method could provide long-term support for price appreciation.
Is Dogecoin Ready for a Major Run?
With technical patterns aligning and historical trends supporting a bullish case, Dogecoin appears to be at a critical inflection point. The formation of the Ascending Triangle, coupled with the RSI recovery, indicates that a breakout could be imminent.
While short-term fluctuations are expected, Dogecoin’s resilient community, historical price cycles, and ongoing crypto market recovery suggest that it could be on the verge of another explosive move.
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