Emily Walker
The highly anticipated rally for Dogecoin, which could potentially reach its previous record, continues to encounter obstacles due to prevailing unfavorable market conditions. However, a cryptocurrency analyst suggests that the meme coin might soon experience consecutive surges.
Potential Back-to-Back Bull Runs for Dogecoin
As Dogecoin recuperates from a recent decline, Trader Tardigrade, a notable expert in the cryptocurrency sector, has suggested a positive outlook for DOGE in the near future. The specialist notes that DOGE’s recent price trends indicate several bullish scenarios, paving the way for significant growth of the meme coin.
According to Trader Tardigrade, DOGE is on the verge of two back-to-back rallies, supported by a favorable chart pattern that signals strong upward momentum. By analyzing DOGE’s price action on a weekly basis, he points to its alignment with the Gaussian Channel pattern.
The Gaussian channel is a technical analysis tool that helps in identifying market trends and trading opportunities. This formation suggests potential breakouts, leading the analyst to predict noteworthy increases in Dogecoin’s value as it approaches important resistance levels. Historically, similar signals have preceded considerable price jumps, which have led to two bullish runs as depicted in the expert’s analysis.
The chart reveals that DOGE initially exited a declining phase and then retested a mid-range line, thus building enough momentum for an upward trend. If historical patterns hold true, Trader Tardigrade strongly believes that Dogecoin will soon experience two significant rallies, potentially reaching a new all-time high.
Currently, DOGE is undergoing its first bullish run, indicating that further growth is likely as the second run approaches. Should this trajectory continue, the expectation is for the meme coin to hit a price of $3 by the end of the second rally.
This anticipated rise to $3 may also signify a peak in demand for Dogecoin within this trading cycle. Renewed enthusiasm and confidence from investors could lead to a powerful upside movement in the near future, igniting the much-awaited surge.
Dogecoin Shifts Towards a Bullish Phase
Following a recent significant market downturn, DOGE faced bearish pressures that led to a steep price drop. Although this dip has impeded positive developments, Trader Tardigrade pointed out that the meme coin appears to be regaining its upward momentum.
In addition, Trader Tardigrade has identified an upcoming Moving Average Convergence Divergence (MACD) bullish crossover on the 4-hour chart. Such crossovers typically signal potential price recoveries following periods of market volatility. Consequently, the expert indicates that DOGE is making strides toward transitioning from bearish to bullish territory.
As Dogecoin gains momentum, the critical price level to monitor is $0.35. This level has emerged as significant due to a large number of short positions that could be liquidated. Technical analyst Ali Martinez cautions that approximately $766.45 million worth of short positions are at risk of liquidation should DOGE manage to rebound to this price level.