The price of Dogecoin has increased by almost 150% since the start of this month, as the leading coin continues to enjoy a massive rally. Crypto analyst Alan Santana provided insight into what drives this rally and its sustainability.
What’s Driving Dogecoin’s Price Rise
In a TradingView articleAlan Santana alluded to DOGE’s monthly chart to show what’s really driving Dogecoin’s price rise. He noted that this month is a bullish breakout month and the first strong green month since the Running of the bulls 2021. Analysts specifically cited January 2021, when similar action occurred, followed by a “very strong bull phase.”
On a related note, Santana said that just because Dogecoin price is seeing this strong growth, it doesn’t mean it’s the end. The analyst instead declared that this very strong growth signals the start of the bullish cycleso investors can expect more parabolic rallies for Dogecoin ahead.
Santana asked those who had doubts to zoom out on the monthly chart. He revealed that this monthly session had the highest volume since 2021. Furthermore, the analyst mentioned that this month broke a long-term resistance and a downtrend. Finally, he indicated that this month ended a period of three years consolidation period for the Dogecoin price.
The analyst noted that this consolidation over three years can lead to a very strong bull marketThis is exactly what is happening. As such, Santana reiterated that no matter how high Dogecoin price is this month, it is only the beginning. In the short term, the analyst warned that there could be fluctuations and upheavals, and even a sharp correction could occur along the way.
However, Santana asserted that such corrections are good because they will be used as an opportunity to take profits in case of resistance and to buy back and reload in case of support. He added that the price of Dogecoin has a lot more to offer and there are no limits on how high prices can go.
The most explosive stage yet to come
In a post Kevin Capital echoed a similar sentiment to Alan Santana, suggesting that the more explosive leg could still be ahead for Dogecoin price. This came as he highlighted the current stage of Dogecon’s price and relative strength index (RSI) on a monthly time frame compared to previous bull cycles.
He claimed that if the Dogecoin price level and RSI hold, there is a long way to go in this DOGE bull run, and the most explosive stage is yet to come. Crypto analyst Tardigrade Merchant recently predicted that Dogecoin price could rally to $8.7 by August 2025 if it mirrors the 2017 bull run or rally to $30 by March 2025 if it follows the 2021 bull run.
At the time of writing, Dogecoin price is trading at around $0.40, down more than 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com