Dogecoin is breaking out after a brief cool-off, with analysts predicting a 120% rally toward $1 as it forms a bullish pattern.
Over the past few days, Dogecoin has struggled to regain its footing after briefly touching $0.4359 a week ago. The meme coin king has oscillated mostly within a tight range between $0.3500 and $0.3800, showing weak price action after its speculative bull run lost steam.
However, Dogecoin showed promising signs of a comeback today, following a 10% green candle that pushed it back into the $0.4000 range. For context, since November 14, when Dogecoin dropped below the $0.40 mark, it had not regained that threshold until today. At press time, DOGE is trading at $0.3950 after a brief pullback.
Dogecoin Ready for a 120% Surge
Amid this recent bullish signal, market watcher Ali Martinez has suggested that the meme coin could continue today’s rally and surge further by 120%. Martinez pointed out that Dogecoin is breaking out of a bull flag pattern, suggesting a potential 120% rally to $0.82, provided the $0.37 support level holds.
The four-hour chart shared by the analyst shows that Dogecoin underwent a seven-day price consolidation since reaching the multi-year high of $0.4359. Now, it appears to be breaking out of this range-bound pattern. Martinez believes the meme coin could hit a new peak at $0.82 based on the recent price action, setting the path for $1.
Other prominent market watchers, like “Professor Astrones,” have expressed similar bullish outlooks about Dogecoin’s breakout from consolidation. “It’s starting,” he tweeted, sharing a two-hour chart showing DOGE reversing the previous ranging trend.
Resistance Levels Dogecoin Must Overcome
However, Dogecoin has significant resistance as it works toward a new peak. The immediate hurdle is overcoming the $0.4402 level, which aligns with the Fibonacci 1.0 level at which Dogecoin encountered rejection last week.
Once this level is cleared, Dogecoin will face additional resistance at $0.5500 and $0.6500 before it can challenge its all-time high in the $0.70 range, which nearly coincides with the 1.618 Fibonacci level.
While the path ahead presents challenges for Dogecoin, it’s worth mentioning that DOGE cleared previous resistance at the $0.2200 and $0.3000 levels in under 48 hours during its explosive price run between November 10 and 12, when it rose from $0.2173 to $0.4359.
Higher Outlooks for DOGE
Meanwhile, the crypto community eagerly anticipates an eventual Dogecoin rally to the $1 mark, much like they await Bitcoin’s rise to $100K. Analysts have projected potential cycle peaks for Dogecoin as high as $18 and even $23, should it follow a similar performance to the last cycle. However, these targets remain highly speculative.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
