Dogecoin has lost crucial support levels leading to a price correction. Even though DOGE has seen bearish movements in the past few days due to a general crypto market downswing, the dog-themed meme coin could shift toward a bullish territory in the short term.
Upside Momentum Building For Dogecoin
In light of bearish performances, Trader Tardigrade, a market expert and investor has highlighted an encouraging trend in Dogecoin’s recent price action. The expert claims that DOGE is showing signs of a potential trend reversal toward renewed bullish momentum.
After a period of downswing, Trader Tardigrade points to key technical indicators that suggest the meme coin will gain traction soon. Specifically, the expert points to a bullish divergence on the DOGE’s 1-day Relative Strength Index (RSI), suggesting that upside momentum is underway.
A bullish divergence typically occurs when prices move lower, but indicators are showing bullish signals or moving upward. Trader Tardigrade noted that DOGE forms a new lower low, while the RSI remains at a higher low. The development indicates that the momentum may be transitioning from a downward trend to an upward trend.
With buying interest surging and technical indicators displaying bullish signals, Dogecoin’s path toward a positive move seems likely in the short term. Should these trends continue to build, DOGE might overcome significant resistance levels, paving the way for a strong price rebound.
In the monthly time frame analysis by crypto expert Daniel Ramsey, the meme coin showcases robust performances for an impending major rally. Several positive developments have been identified on the monthly chart such as a massive Cup and Handle formation.
A Cup and Handle formation is a technical pattern that has historically sparked upside strength, pushing a digital asset to uncharted territories in a bull cycle. Daniel Ramsey expects a breakout from the pattern to spur a move above the key zone between $0.22 and $0.3. Ramsey also underlined three big white soldier bullish candlesticks pattern further supporting Dogecoin’s upside potential.Â
With a breakout from the cup and handle pattern combined with these candlesticks, the analyst believes that DOGE could soar to a new all-time high of $1.1 in the upcoming months. The worst-case scenario is that DOGE might retest the key zone prior to the anticipated massive rally.
Will Past Surges Repeat This Cycle?
Several recent developments are likely to bolster Dogecoin’s rally this cycle to unprecedented heights as seen in past cycles. During the last cycle, Dogecoin saw tremendous growth of over 80X, leading to a market top and an all-time high. According to DOGECAPITAL, DOGE was able to experience this massive upsurge with heightened retail interest and without institutional interest or activity.
Meanwhile, DOGE is seeing heightened institutional and global interest such as the potential introduction of Spot Dogecoin Exchange-Traded Funds (ETFs). As a result, the expert foresees a huge growth, targeting between $9 and $35 price levels this cycle.
