Dogecoin (DOGE) has seen an increased rally, surging over 363% since its August 5 low at $0.0805, currently settling at around $0.384. Following this bullish move, the token surpassed the crucial Fibonacci retracement level of $0.786 to $0.418, calculated from its 2021 high of $0.7488 to its 2022 low of $0.0491, indicating strong upward momentum.
This price action has brought DOGE to its highest levels since 2022, sparking increased speculation about its future trajectory. To comprehensively analyze DOGE’s potential, check out our Dogecoin Price Prediction for an overview of upcoming milestones and market trends.
Technical indicators signal bullish continuation
Dogecoin technical signals are lighting up with bullish momentum, captivating traders with its explosive potential. The Relative Strength Index, for example, surged to an intense 84.87, placing it deep in overbought territory – a rare zone that has historically preceded significant price movements. The last time the RSI reached these highs was in April 2021, just before the cryptocurrency embarked on a massive rally to $0.748.
One of the main drivers of this rally is the formation of a bullish flag pattern, visible on the weekly chart. After consolidation, the DOGE token definitively crossed the flag at $0.1088, convincingly crossing the 200-week moving average at $0.131. This breakout is consistent with the bullish continuation observed during past rallies. According to technical projections, the breakout target closely aligns with $0.75, coinciding with its previous high.
Will DOGE break its 2021 all-time high?
As market analysts point to the compelling technical signals fueling DOGE’s latest rally, a new wave of optimism has swept through the token community. Ali, a respected market observer, is one example. It emphasizes breaking away from a classic bull flag pattern, a formation that previously foreshadowed historic price increases.
#Dogecoin $DOGE is breaking out of a bull flag, which anticipates a 120% rally to $0.82 as long as support at $0.37 holds. pic.twitter.com/JPrGIzBnUn
– Ali (@ali_charts) November 19, 2024
If the $0.37 support remains intact, Ali predicts that the DOGE cryptocurrency could rise to $0.82, breaking its previous resistance at $0.748 and making new milestones. To add to the bullish narrative, Trader Tardigrade turns its attention to the Gaussian channel, highlighting a rare and powerful signal.
According to the analystDogecoin’s momentum is surging from the middle of the chain’s band, a phenomenon seen only twice before in its history. The previous two instances – in 2017 and 2021 – triggered breathtaking parabolic rallies, catapulting the price of DOGE by over 1,000% in just a few months.
Critical levels to monitor
On the positive side, the next key level for Dogecoin lies at $0.50, a psychological barrier that aligns with historical resistance zones seen during the cryptocurrency’s 2021 rise. Above this level would open the door to a test of the 2021 all-time high of $0.7488. Beyond that, Ali’s projection of $0.82, based on the measured movement of the bull flag, becomes a realistic goal. Further upside could push the DOGE token towards the Fibonacci extension level of $1.272 to $1.57, signaling a possible new all-time high.
On the other hand, immediate support lies at $0.37, which has firmly remained a critical level during the ongoing rally. Failure to maintain this level could see DOGE retrace to $0.2646, the 0.618 Fibonacci retracement level. Below that, the 200-week moving average at $0.131 provides a solid base of support, as it marked the launch pad for the current rally. A break below this level would signal a further bearish reversal, possibly taking the cryptocurrency back towards its 2022 low near $0.05.
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