Dogecoin (DOGE) technical setup signals a continuation of its recent momentum, which has seen the meme coin outperform Bitcoin (BTC).
With DOGE aiming to surpass the $0.5 mark resistance At this level, the coin could benefit from a boost from the fact that it has officially entered the bullish “green zone”. This phase has historically seen explosive growth for the same coin, according to cryptocurrency trading expert Tardigrade Merchant.
In a X post on December 1, the analyst noted that the “green zone” is associated with vigorous and rapid price movements. Historically, Dogecoin’s trajectory in this zone has led to monumental price surges, and this cycle appears no different.
“The green zone tends to shrink after each cycle, indicating that the $Doge pump will be more vigorous and faster in this zone,” the expert noted.
For this purpose, the trading expert called on investors to hold on to their DOGE, anticipating a potential rise towards double-digit prices.
It should be noted, however, that even if DOGE mimics past movements, reaching double figures during this phase is not guaranteed, especially in the broader context. cryptocurrency market experienced significant declines.
Meanwhile, as reported per Finbold, the analyst previously suggested that DOGE bull run had just started, based on signals from the Price Momentum Oscillator (PMO) indicator.
Dogecoin price expected to outperform Bitcoin again
On-chain cryptocurrency analyst Ali Martinez also common the bullish outlook. Martinez suggested that Dogecoin could skyrocket 2,400% against Bitcoin.
This analysis is based on a breakout of a two-year descending channel, signaling potential gains of 0.00000438 BTC to 0.00009375 BTC.
Such a rally will continue Dogecoin’s impressive performance in 2024, during which the coin has gained nearly 360% year-to-date, compared to Bitcoin’s 119% over the same period.
Notably, Dogecoin’s rally was fueled by bullish optimism surrounding The election of Donald Trump and the influence of Elon Muskwho is expected play an important role in the next administration.
The possible approval of the DOGE ETF
Additional bullish sentiment arises from the potential entry of institutional investors into Dogecoin via an exchange-traded fund (ETFs).
In this regard, Alexander Blum, CEO of Two Prime Digital Assets, believes that a DOGE ETF application is inevitable, driven by the success of Bitcoin ETF.
However, Blum noted that regulatory approval remains uncertain. If the product is approved, attention will shift to whether Dogecoin can replicate Bitcoin’s gains and potentially reach the $1 mark.
Still, the launch of a Dogecoin ETF might not be universally well-received. Dogecoin’s volatility, limited utility, and fanciful origins could deter significant investments in such a product.
Dogecoin price analysis
At the time of writing, DOGE was trading at $0.42, with daily gains of around 0.5%. On the weekly chart, the same coin rose by 3.6%.
Considering all factors, Dogecoin still appears to be supported by bullish sentiment as it targets the $0.5 mark. However, sustained bullish momentum in the broader market will be essential for DOGE to maintain its upward trajectory.
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