Market analysts maintain their bullish stance on Dogecoin, with a recent analysis suggesting its price action is similar to XRP, which recently exploded.
Despite a modest 3.34% decline so far in December, Dogecoin has maintained its position above $0.40. After surging 160% in November, analysts anticipate another significant rally for the meme coin, with projections hinting at a potential move toward $1.15.
In a recent report, market analyst Jacob Canfield pointed out that Dogecoin’s current trajectory mirrors XRP’s behavior in lower time frames. For context, XRP has skyrocketed 52% over the past week to reclaim the $2 mark for the first time in nearly seven years.
Notably, DOGE could repeat a similar upside. Canfield’s chart confirmed the formation of higher lows, with Dogecoin holding prior resistance levels as support. This phase suggests a classical movement pattern that indicates a possible continuation of the upward momentum.
Canfield also highlighted the $0.48 level as an important pivot, while the $0.55 zone aligns with the 1.618 Fibonacci extension. This serves as the next major resistance area, while the $0.66 level represents a longer-term upside target at the 2.618 extension.
Dogecoin Ascending Triangle Breakout
Meanwhile, a separate analysis from Rekt Capital identified a daily ascending triangle structure for Dogecoin. His chart shows Dogecoin trading within an upward sloping trendline and horizontal resistance at $0.43.
Interestingly, this bullish continuation pattern implies growing buyer interest near support levels. According to Rekt Capital, a daily close above $0.43 was essential to confirm the breakout, which occurred recently. DOGE recorded this breakout hours later.
Dogecoin has broken out from the Ascending Triangle
Any dips into the top of the pattern, if at all needed, would constitute a post-breakout retest to confirm the breakout#DOGE #Crypto #Dogecoin https://t.co/SBX4clO1oS pic.twitter.com/047tyyuvlT
— Rekt Capital (@rektcapital) December 2, 2024
Following the breakout, the analyst predicted a potential retest of the $0.43 level to validate support. If successful, the retest could lead to further price growth. However, at press time, DOGE has broken below $0.43, currently trading for $0.4046, defending the $0.40 support.
RSI Suggests Stronger Momentum
Notably, despite the breakdown, prominent commentator Trader Tardigrade recently confirmed the bullish narrative when he examined the relative strength index (RSI) on the 4-hour chart.
According to him, recent RSI bounces from the oversold zone have led to significant price spikes of 40% and 200%. Tardigrade noted that each successive bounce is accompanied by increasing intensity.
#Dogecoin RSI has been bouncing up from the Oversold Zone on 4-hour chart🔥
The recent RSI bounces from the same zone brought $Doge to surge 40% and 200%. The pump intensity is even getting stronger.
It’s not surprising that $Doge will spike beyond 200% levels, which is above… pic.twitter.com/ZWdQG27w01— Trader Tardigrade (@TATrader_Alan) November 27, 2024
He believes if this trend continues, Dogecoin could achieve a rally exceeding 200%, which places the price target above $1.15. Such a move would echo Dogecoin’s historical performance.
These reports suggest that the $0.40 acts as DOGE’s immediate support level. However, on the upside, resistance stands at $0.55, with the $0.66 Fibonacci extension as a longer-term target. Should momentum persist, the $1.15 target highlighted by Tardigrade becomes achievable.
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.
