Technical Analysis Suggests A Massive 1,000% Rally For Dogecoin Coming
Dogecoin has finally seen some upside this week with the price breaking above $0.23. It has not been at the same growth level as its rival Shiba Inu, but has been on a steady growth pace since trading opened for the week.
It’s hard to accurately predict where the coin might be headed in the next few months. However, there is a technical analysis that points to a massive price rally.
Justin Bennett earlier this week tweeted a bullish prediction for the asset. He also looked more in-depth to it in a recent article, and pointed to recent market trends putting Dogecoin on a path to a breakout. According to Bennett, the rally would mirror the growth pattern of previous breakouts and will play out over the next few months. His latest analysis says that all of DOGE’s movement in the last few months has led it to this month.
1,000% Dogecoin Rally Coming?
Bennett wrote in the report that Dogecoin’s low momentum through the past few months has been a setup for this breakout. Slow months had characterized Doge’s price movements, pulling it below $0.2.
The similar setup appeared on the charts twice this year. The first saw DOGE price rally about 900%, while the second was the most prominent. When the second breakout occurred, Dogecoin rallied over 1,200% and this was when DOGE price hit its all-time high over $0.70. The price target this time around may not be the same, but is expected to stick to the same pattern, leading to a 1,000% price rally.
The condition for this breakout to happen, depends on whether or not the Dogecoin can break the $0.245 resistance point. According to Bennett DOGE would need to break above this price point for the setup to be complete.
It would seem that the Dogecoin is ready for a price rally. It has not moved much in tandem with the recovery trends of bitcoin and the broader market. Doge could begin its run towards $0.32 and bulls are targeting a peak of $0.57.
Bennett wrote:
“If this breaks higher, targets like $0.32, $0.42, and $0.57 are well within reach.”
Doge Price Movements
One thing Dogecoin does have is a huge number of supporters through its strong community. Even with declining prices, Dogecoin holders have held on to their bags in hopes of the market to flip. This support has translated to the value of the coin.
Another thing that is on DOGE’s favor is the payment adoption of the coin. AMC was the latest to announce support for Dogecoin payments, among Mark Cuban’s Dallas Mavericks many others.
Doubts that the DOGE price could sustain and that it would fall back to 2020 levels have fallen by the wayside. Dogecoin has mostly held out above the $0.2 level, suggesting that this is the new bottom for the meme coin.
The price struggled for most of last week and going into this week, momentum had dropped. It hit the week’s low of $021 on Tuesday. Then steadily recovered back up above $0.23, suggesting that Bennett’s $0.245 trigger will be hit before the week runs out. At the time of writing DOGE trades for 0.2291, with 3.5% loss on a daily chart.
