The much-anticipated major rally for Dogecoin, potentially toward its present all-time high continues to face significant setbacks due to unfavorable market conditions. Given recent price developments, a crypto expert forecasts that the meme coin could see a back-to-back bull run soon.
Dual Bull Runs In Sight For Dogecoin
As Dogecoin gradually recovers from the recent market dip, Trader Tardigrade, a crypto expert and investor has outlined a promising outlook for DOGE in the short term. According to the expert, DOGE’s price performance hints at multiple bullish scenarios that could push the meme coin toward uncharted territory.
Trader Tardigrade claims that DOGE looks to be gearing up for two consecutive rallies, bolstered by a promising chart formation that indicates robust upside momentum. Navigating the meme coin’s price action on the weekly time frame, he points to an alignment with the Gaussian Channel pattern.
Specifically, a Gaussian channel formation is a technical pattern that aids in spotting market trends and trading opportunities. With the formation indicating breakout possibilities, the analyst predicts notable price increases for Dogecoin as it draws closer to key resistance levels. Historically, this indicator has preceded significant upward movements, resulting in two bullish runs as seen in the expert’s chart.
The chart shows that DOGE initially left the channel when it was red, and then retested the mid-channel line, allowing it to gather enough strength for an uptrend. Should past scenarios repeat, Trader Tardigrade is confident that Dogecoin will witness two consecutive major rallies to a new all-time high shortly.
DOGE is presently experiencing the first bull run, which suggests that more growth is still ahead as the second draws closer. At the end of the second bull run, marking the upper line of the pattern, the meme coin will be valued at $3.
This anticipated move to $3 may also represent a market top for Dogecoin in the ongoing cycle. Renewed optimism and growing confidence in DOGE among investors might spur upside strength in the coming days, which may kickstart the much-anticipated move.
DOGE Transition Into A Bullish Period
Given the massive market decline a few days ago, DOGE faced bearish forces, causing its price to drop sharply. Even though this decrease has hindered positive movements, Trader Tardigrade highlighted that the meme coin might be regaining steam toward an upward trajectory.
Trader Tardigrade has spotted an impending Moving Average Convergence Divergence (MACD) bullish crossover on the 4-hour time frame. Such MACD crossovers are typically a precursor for price recovery after a period of volatility. As a result, the expert noted that DOGE is generating short-term momentum, shifting from bearish territory to bullish territory.
With Dogecoin gathering steam, the next key level to watch is the $0.35 mark. The $0.35 level has turned out to be a critical juncture due to the significant portion of short positions that will be liquidated. Technical expert Ali Martinez warns that about $766.45 million of short positions are at risk of liquidation once DOGE rebounds the price mark.
Featured image from Unsplash, chart from Tradingview.com
