Dogecoin is making some big moves! After a long period of decline, it looks like things might be turning around.
Dogecoin Breaks Out
A crypto analyst, Jonathan Carter, noticed that Dogecoin just broke out of a descending channel on its 3-day chart. This is a pretty significant technical indicator suggesting a shift from a bearish (downward) trend to a bullish (upward) one. This breakout follows months of lower highs and lower lows. Before the descending channel, Dogecoin was in a different pattern (a Falling Wedge) which it also broke out of positively in late 2023, leading to a price rally. Carter points out that Dogecoin’s Relative Strength Index (RSI) is nearing 75, showing strong upward momentum. However, this also means it could be getting overbought soon. He predicts potential price targets of $0.287, $0.340, and a possible return to its previous high near $0.445. There’s also a support level around $0.092 which could prevent a sharper drop.
Another Analyst’s Prediction: Aiming for $0.60
Another analyst, “Ace of Trades,” sees things similarly, but with even higher targets. Using the Wyckoff market schematic, they believe Dogecoin has left an accumulation phase and entered a mark-up phase on the weekly chart. This model divides market phases into accumulation, mark-up, mark-down, and distribution. Dogecoin spent much of 2022 and 2023 in accumulation. Now, the bullish activity suggests the start of an uptrend. The RSI crossing above its Exponential Moving Average (EMA) adds to this bullish signal. Ace of Trades suggests that if this momentum continues, Dogecoin could hit $0.34 and potentially even reach the distribution zone above $0.60, depending on continued volume and interest.