Emily Walker
A hidden bullish divergence has been spotted on the Dogecoin price chart, suggesting an upcoming upward trend. A crypto analyst has set a price target of $0.7 for Dogecoin based on this technical formation.
Potential Price Increase for Dogecoin
On November 20, Trader Tardigrade, a crypto analyst on X (formerly Twitter), shared that a hidden bullish divergence is present in the Dogecoin 4-hour Relative Strength Index (RSI) chart. This technical signal indicates that Dogecoin might be on the verge of a significant price increase.
Typically, a hidden bullish divergence in the RSI suggests that while Dogecoin’s price forms higher lows, the RSI shows lower lows. This indicates that although the RSI signals decreasing momentum, the price is holding steady, which could hint at continuing upward movement.
Dogecoin has recently experienced a significant upward trend, climbing from just over $0.1 to more than $0.35 in a few weeks. This rally has allowed it to approach the $0.4 resistance level, a crucial point that may lead to further price gains for the coin.
Looking at Trader Tardigrade’s chart, the Hidden Bullish Divergence appears to be forming around the $0.37 mark. The analyst has suggested a bullish target of $0.7 for Dogecoin, indicating potential for steady growth from its current level if it can sustain positive momentum.
As of now, Dogecoin is trading at $0.38, reflecting a remarkable 165.19% increase within the past month, per CoinMarketCap. Should this optimistic projection stemming from the Hidden Bullish Divergence hold true, Dogecoin could see an 84.2% increase from its present price, potentially nearing or surpassing its previous record high of $0.73 from May 2021 during the last bull market.
Dogecoin Aiming for New All-Time High
In another post on X, analyst Steph expressed a positive forecast for Dogecoin. Steph believes that the coin might be on track to reach a new all-time high in this bull market cycle.
Sharing a two-year price chart for Dogecoin, the analyst identified potential target prices between $1.4 and $1.8. This rally might occur by the end of 2024 or in 2025, according to their analysis.
Current market trends, potentially influenced by figures like Elon Musk and his newly introduced Department of Government Efficiency (D.O.G.E), may drive this price increase. Additionally, the forthcoming inauguration of Donald Trump as the 47th President of the United States could serve as another key factor pushing Dogecoin prices higher.