Elite Analyst Says Dogecoin Breakout Could Lead to a Major Rally – Here’s Why

Bitcoin Buddha, a notable analyst, informed his 450.6k followers on X (formerly Twitter) that Dogecoin seems primed for a prospective parabolic ascent. His upbeat prediction is backed by both technical chart patterns and external factors, including Elon Musk's affirmations.

Dogecoin Chart Analysis: Bullish Breakout After Prolonged Downtrend

The Dogecoin chart reveals that the digital asset traded in a descending trend for several months, beginning in May. The pattern's lower highs and lower lows indicated a steady downward trend.

However, when DOGE's price surged from this pattern in early October, it marked a shift in momentum from bearish to bullish. The breakout triggered a sharp rise in price, verifying the trend reversal.

Since the breakout, Dogecoin has been consistently rising, forming higher highs and higher lows. The cryptocurrency is breaching key resistance levels, indicating substantial buying interest, as evidenced by the price trend.

Support and Resistance Levels in Focus

Following its recent price surge, Dogecoin has established new support in the $0.10 to $0.145 range, upon examination of support and resistance levels.

The cryptocurrency's ability to sustain its position above these levels after previously failing to break through them signifies the strength of bullish sentiment. The next significant resistance levels for DOGE are located between $0.16 and $0.22, and traders may wish to monitor these levels in the coming weeks.

Continued bullish movement above these resistance levels could result in further gains, with Dogecoin potentially reaching new all-time highs. The price action suggests that bulls are currently in control, and a potential rally remains plausible.

External Influences and Market Sentiment

Technical indicators are not the sole factors supporting the positive sentiment surrounding Dogecoin. Elon Musk's implicit endorsement is a significant contributor to the current enthusiasm, as emphasized in Bitcoin Buddha's tweet. DOGE's price has historically surged due to the tech magnate's previous support, and his continued backing continues to inspire investor confidence.

Buddha also hinted at the potential for Dogecoin to be integrated into X payments, which could serve as a transformative development for the cryptocurrency. While this integration remains speculative, the possibility has sparked excitement within the community, boosting the outlook for DOGE.