Dogecoin’s breakout from 3-year channel signals 500% rally potential in 2025

Dogecoin (DOGE) surged over 75% in October, reaching $0.172 near the month's end - its highest since May 2024.

Elon Musk's influence appears to have driven the memecoin's gains. At Donald Trump's New York rally on October 27th, Musk discussed saving taxpayers' money through his Department of Government Efficiency (DOGE).

Technically, Dogecoin exhibits a pattern that suggests potential growth towards $1 and beyond.

Dogecoin Breaks Out of a Symmetrical Triangle

Dogecoin's potential to reach $1 during the current bull cycle stems from its breakout from a symmetrical triangle formed since April 2021.

Symmetrical triangles often resolve in the direction of the preceding trend, with potential gains matching the height of the triangle.

Dogecoin experienced a breakout from a similar triangle in 2020-2021, resulting in a 31,375% rally.

As of October 2024, DOGE appears to be undergoing a similar breakout.

Applying this technical rule, DOGE targets $2 as a potential upside target in the coming years, with $1 potentially achievable in 2025.

The weekly relative strength index (RSI) supports this bullish outlook, with a bounce from historical support at around 46 in July.

Historically, RSI support bounces in consolidation patterns like those of Dogecoin often lead to sustained rallies.

If the breakout holds, a 500-1,000% increase from current levels is possible, targeting $1-$2.

Trump Win Could Further Boost DOGE

The connection between Musk and Trump could amplify Dogecoin's bullish sentiment if Trump wins the 2024 election, given his appeal to the retail base that supports DOGE.

Musk's collaboration with the Trump administration and the shared "D.O.G.E." acronym reinforce Dogecoin's meme appeal, similar to his tweets and "Dogefather" persona, which drove DOGE's 64,000% surge in 2020-2021.

On Polymarket, Trump's odds of winning the 2024 election are estimated at 64.1%, higher than Kamala Harris's 35.9%.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.