Emily Walker
Recently, Dogecoin, the leading meme coin inspired by dogs, encountered a significant decline, resulting in a sharp fall in its price towards essential support levels. Despite these recent downturns, several important factors indicate that DOGE may be gearing up for a substantial rally in the near future.
Expectations of a Strong Rally for Dogecoin
Even though Dogecoin is currently facing challenges, veteran market analyst and investor Kevin envisions a positive trend for DOGE shortly. His analysis references important markers that suggest the timeline for the anticipated surge for the meme coin.
By assessing prior trends and current pricing conditions, Kevin’s insights suggest that the present phase of consolidation might soon conclude. With key indicators reflecting increasing momentum, a forthcoming upswing may lead to a more significant rally, propelling the meme coin to unprecedented values.
Kevin also pointed out that Dogecoin’s current trading activity shows the coin has surpassed the crucial threshold of 43 on the daily Relative Strength Index (RSI). According to his observations, DOGE maintained this level without dropping below 43 during the previous bull market.
The importance of the 43 level on the daily RSI cannot be overstated, as it previously served as a launch pad for three consolidation phases leading to new highs. Recent analysis indicates that the daily RSI for the meme coin has climbed to 47.
Additionally, Kevin noted that throughout the past bull market, Dogecoin consistently remained above the zero line on the daily Moving Average Convergence Divergence (MACD) indicator. This strong performance at this pivotal marker acted as a springboard for greater increases when reached. Current trends suggest the market may hit the zero line within the next 3 to 4 days.
If the current cycle resembles prior trends, market analysts, including Kevin, believe this consolidation phase will likely conclude in about a week. He predicts that DOGE’s forthcoming rally toward higher prices might commence around Christmas, prompting investors and traders to keep a close eye on critical support levels for a potential upward shift.
Is a Rebound Imminent?
Dogecoin seems poised to regain its upward momentum, as crypto analyst Trader Tradigrade has forecasted a possible recovery, highlighting that DOGE’s daily RSI has entered a vital rebound area. This prediction draws from a previous scenario that led to significant price increases.
The last time DOGE’s daily RSI reached this area was in September, resulting in a local low at $0.095, after which the coin surged to $0.48. Based on this historical performance, Trader Tardigrade suggests that Dogecoin could potentially rise to $1.35 from its current position.