A new technical analysis by a crypto analyst suggests that the recent Dogecoin price decline may be coming to a fast end. The analyst projects that this top meme coin is gearing up for a price rally toward $0.5. Although DOGE’s long-term outlook appears bullish, the meme coin faces a final hurdle that could delay its ascent.
Dogecoin Price Pattern Signals Impending Surge
According to X (formerly Twitter) crypto analyst Cas Abbé, Dogecoin is forming a perfect rounding bottom pattern on the yearly chart, indicating a potential to embark on a major rally to $0.55. This textbook pattern is a technical indicator that often signals a possible start of a price reversal after a prolonged downtrend.
The rounding bottom pattern suggests that Dogecoin has gradually built momentum despite its recent price declines to new lows. The analyst shared a price chart depicting the meme coin’s price movements from 2022 to the present. The yellow trendline at the top of the chart represents a resistance zone around the $0.4 and $0.55 mark. DOGE had previously tested this resistance zone but faced a rejection that pushed its price down to current lows.
Abbè’s chart also highlights Dogecoin’s Relative Strength Index (RSI) momentum. The weekly RSI is approaching a support trendline around the 40 to 48.98 level. Historically, DOGE tends to reverse and move higher when RSI reaches this level. Based on the upward trajectory of the rounding bottom pattern, the analyst projects that the price could soon rally as high as $0.55.
While this target will record a significant milestone for Dogecoin, it’s still well below its ATH of $0.65, attained during the previous bull market in 2021. Other crypto members have expressed excitement about Abbè’s prediction, forecasting even higher targets of $1 for DOGE.
Additionally, commentators like Dean Chapman have highlighted the potential impacts of a Dogecoin ETF on the meme coin’s future outlook. With news of Dogecoin ETF filings spread across the crypto space, it is possible that DOGE could experience a more substantial price rally akin to Bitcoin during its Spot Bitcoin ETF FOMO.
One Final Dip Before The Rally?
Despite the optimistic outlook, Abbè cautions that Dogecoin may face a final decline before the anticipated rally. Technical indicators on the chart, particularly Dogecoin’s RSI and Moving Average Convergence Average (MACD), hint at a short-term pullback.
Abbè predicts that Dogecoin will experience an initial decline towards the $0.19 to $0.20 range before finding solid footing for a price reversal. If the meme coin can successfully hold above this support range and break through resistance levels, DOGE could rally to the projected $0.55 target. This would represent a 120% increase from its current market value of $0.25.
Featured image from Adobe Stock, chart from Tradingview.com
