Dogecoin (DOGE) Bullish Setup: Is This the Ultimate Bottom Before a Rally? Analyst Insights

Dogecoin (DOGE) Poised for Potential Breakout

Since the November-December rally, the cryptocurrency market has faced a correction, with many altcoins and memecoins struggling despite Bitcoin's momentum.

Dogecoin's Downturn

Dogecoin, the top memecoin, has experienced a significant drop of over 37% in the past 60 days, now trading around $0.24. This decline from its December 8 high of $0.48 represents a 50% correction, raising questions about whether DOGE has reached its local bottom.

Historical Patterns Suggest a Rally

According to crypto analyst Chandler, DOGE's current daily chart shows striking similarities to its 2017-2018 market cycle. In that cycle, Dogecoin underwent a major correction before embarking on an explosive 24x rally, rising from $0.0008 to $0.018.

Technical Indicators Support Breakout

Several technical indicators suggest that DOGE could be on the verge of another significant breakout:

• Price Action: The rounded top formation and subsequent correction mirror the 2017 structure.
• Support Level: DOGE has returned to a key horizontal support level, which has historically acted as a bounce zone before major surges.
• RSI Indicator: The Relative Strength Index (RSI) resembles the 2017 pattern, indicating a potential bottoming out.

Projected Trajectory

In the 2017 cycle, DOGE entered a parabolic phase after completing its correction and consolidation. If history repeats itself, DOGE could potentially rally above $0.50 and even reach a new all-time high (ATH) around $1.

Disclaimer:

This article is for informational purposes only and does not provide financial advice. Conduct your own research before making investment decisions.