The community’s rising levels of Dogecoin speculation towards a possible new alt-season have a lot to do with Dogecoin’s past performance. The token’s first major market cycle saw the cryptocurrency increase by over 9,000% in value. This was soon eclipsed in the next market cycle, where it rose by a staggering 28,000% in price.
Source: X
Similarly applied increases based on percentage gains in the current price lead to very optimistic forecasts. A rerun of the past booster of 9,000% brings the token to the price of $10, with bigger price movements leading to a price of $20. In the short term, the levels based on technical indicators are set at $0.6533 and $1.2511.
Also Read: Dogecoin Trading Volume Jumps to $2.12B as Market Activity Picks Up
DOGE Technicals Hints at a Strong Upcoming Breakout
The token had been in a steady downtrend since November, with lower highs and lower lows, mostly remaining below the Middle Bollinger Band (20-day SMA). Recently, a strong surge occurred, which moved above the upper band. The current candlestick formed a strongly bullish close at $0.15014, which is much higher than the 20-day moving average ($0.14498) and the lower band ($0.11343).
Source: TradingView
The technical indicators also support the bullish turn. The RSI sharply moved to 63.92 from the heavily oversold area around 43.06. However, it almost reached the overbought level. The MACD also indicates the bullish crossover, as the MACD line is above the signal line with the expanding histogram bars. The token has finally broken away from the long-term downtrend.
DEGE Pennant Breakout Signals Ongoing Upward Momentum
Moreover, another crypto analyst, Trader Tardigrade, revealed that the token is presently putting out strong buy signals as its price chart is indicating the formation of a traditional bull pennant pattern. The pattern is formed after Dogecoin registered a strong breakout to the upside, followed by consistent range-bound action, indicating that its price is gaining rather than losing further strength.
Source: X
Technical forecasts based on the bull pennant formation indicate a possible Dogecoin breakout point of approximately $0.1718 if the resistance level is successfully breached. A clear breakout above the upper trend line of the bull pennant formation, especially if it’s accompanied by an increase in trading volumes, might attract further buying support from the market.
Also Read: Dogecoin (DOGE) Enters Major Accumulation Phase Charts Point to Rally Toward $0.75
