Since reaching its yearly high of $0.2288 on March 28, the Dogecoin price has plummeted by over 54%. From its all-time high in May 2021, the DOGE price has declined by more than 85%. Despite this downturn, crypto analyst Cryptorphic (@Cryptorphic1) suggests that a bullish reversal may be on the horizon.
Cryptorphic has conducted an in-depth analysis of the weekly DOGE/USDT chart, positing that Dogecoin could experience a substantial 900% surge in price. This optimistic forecast is underpinned 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 shared by the analyst shows Dogecoin’s performance since February 2021, which is capped in a tightly bound channel. This channel was defined by consistent 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 being ultra bullish on DOGE.
#1 Breakout Above Accumulation Channel
In the last week of February 2024, DOGE experienced a breakout characterized by a massive candle that propelled it beyond the upper limits of this long-term channel. Following this breakout, Dogecoin entered a phase of retesting the upper boundary of the previous channel, a crucial phase for confirming the strength and potential longevity of the breakout.
The breakout is quite significant for occurring after over three years of price consolidation within a defined range. Such a long period of accumulation often sets the stage for massive price move once breached. A successful retest typically confirms the breakout’s validity and could signal a continuation of the upward trend.
#2 Strong Weekly Doji Candle
Another key aspect of what needs to happen is “printing a strong weekly Doji, signaling significant buying pressure from the bulls.” Such a candlestick on the weekly chart would be characterized by a small body with a long lower shadow, suggesting a victory for the bulls in a tug-of-war between buyers and sellers.
#3 The “Musk-Effect”
The mention of Dogecoin by Elon Musk, who may be promoting DOGE as a means of payment on X after the presidential election, could increase speculative sentiment. Musk’s tweets have had an extremely strong influence on the DOGE price in the past, but things have gone very quiet in recent months. “Elon Musk is likely to shill it after the presidential election this year,” the crypto analyst speculates.
#4 Moving Averages
From a technical standpoint, Dogecoin’s current position above the 200-day Exponential Moving Average (EMA) suggests a strong bullish sentiment in the long-term perspective. Conversely, its struggle to maintain above the 100-day EMA indicates immediate challenges. Thus, a decisive close above the 100-day EMA could be another major sign for 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 to grow” without pushing the asset into the overbought territory. This is critical as 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 trend where memecoins are outperforming more fundamentally solid projects, indicating a market preference that could favor DOGE in a bullish cycle. This needs to continue. “MEME coins have been outperforming solid projects this season, and I believe DOGE will lead the charge in this bull run,” the analyst states.
#7 Weekly Close Above $0.11
Overall, the analyst claims that “Multiple indicators are suggesting a bullish move is on the horizon.” He plans to maintain a position in Dogecoin, with an intention to buy on dips—a strategy that leverages potential volatility for accumulation at lower prices.
The identified trigger point for a bullish acceleration is a weekly close above $0.11 in the grey liquidity area. A close above this threshold could catalyze the anticipated rally.
At press time, DOGE traded at $0.10432.
Featured image created with DALL.E, chart from TradingView.com