Dogecoin has been moving in a relatively tight range in the past 24 hours, around $0.24, after rejecting attempts to push higher above $0.28 last week. This consolidation movement has given rise to a technical setup on the weekly candlestick timeframe chart that could determine whether the next big move is around the corner. According to a technical analysis shared on the social media platform X by an analyst known as Hailey, Dogecoin may be preparing for a breakout that could send it on an explosive 520% rally.
Supertrend Indicator Signals In Focus
The analysis by crypto analyst Hailey highlights the importance of the Supertrend indicator, which has been a reliable guide for Dogecoin’s price movements in previous cycles. Particularly, using this indicator on the weekly candlestick timeframe chart shows that each time DOGE flipped above the Supertrend red line in the past two years, its price went on to register a breakout with percentage gains.
The first of such breakouts, which was in November 2023, produced an 84% surge. The second breakout was in early 2024, and this pushed the Dogecoin price about 194% higher. The third and most powerful breakout came in November 2024, which resulted in a staggering 446% price surge.
According to the analyst, Dogecoin’s current market structure is showing similar conditions, and if it flips green on the Supertrend line once again, its price action could embark on a fourth rally.
Possibility Of A 520% Breakout
The chart accompanying Hailey’s post outlines the historical rallies and projects what another successful breakout could look like. The technical setup in the chart above shows Dogecoin hovering just under the Supertrend resistance trendline, and the positive outlook depends on a decisive close above it.
Interestingly, the most recent candlestick is playing out an indecisive Doji formation after two bullish candlesticks. This formation is much like the ones Dogecoin went through before each of the previous flips.
Each prior green flip has delivered increasingly larger returns, moving from 84% to 194% and then to 446%. A fourth rally in line with this sequence would logically point toward another significant expansion. This time, the price target sits at nearly $0.90 per token. This would not only represent a 520% gain from the breakout level but also a new all-time high for the meme cryptocurrency.
The most important thing now for a bullish flip is for Dogecoin to overcome its most recent rejection at $0.28 and close the week above $0.3. However, the analyst also cautioned that failure to break through could send the Dogecoin price back to a retest of the last weekly lows.
At the time of writing, Dogecoin is trading at $0.2422.
Featured image from Getty Images, chart from Tradingview.com
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