Dogecoin took a dip recently, falling back to around $0.16 – a price not seen in months. But don’t panic! Some analysts think a huge price surge is coming.
A Potential Dogecoin Moonshot?
While the recent market downturn hit Dogecoin hard, technical analyst Trader Tardigrade sees a silver lining. He’s spotted a bullish signal on the DOGE chart – a signal that, historically, has preceded major price increases. This has happened twice in the last year.
This signal shows up on the weekly chart, and it’s even more reliable when combined with what’s happening on the DOGE/BTC chart (which tracks Dogecoin’s price relative to Bitcoin). Trader Tardigrade notes that lower lows on the DOGE/BTC chart have consistently preceded big Dogecoin pumps. The current situation looks very similar. He’s predicting a massive price jump, potentially pushing DOGE past $0.70 and even to a new all-time high.
Bullish Signals on the Horizon
Even though Dogecoin is near key support levels, some indicators point to positive price action. The Relative Strength Index (RSI) has reached a point that often precedes upward trends. Trader Tardigrade highlights a bullish divergence: the RSI is making higher lows while the price is making lower lows. This suggests the selling pressure is weakening and a price reversal is likely. In short, he sees this as an early sign of another major rally for Dogecoin.
