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Dogecoin appears to be preparing for its next significant move, with a familiar price structure showing up on its price chart. According to crypto analyst (basictradingtv), the meme coin is playing out a trend of rounding bottom patterns and parabolic rallies, which have always sent its price to all-time highs. The current setup suggests that Dogecoin’s ongoing recovery from its March low may not just be a temporary bounce, but there’s a 100% chance it is the beginning of a much larger parabolic rally.
Dogecoin Trading In A Familiar Cycle: 100% Chance Of Rally
At the core of the bullish forecast is the recurrence of a well-known price pattern, the rounding bottom. Dogecoin is known for trading in multi-year cycles that start with a gradual bottoming formation, eventually leading to explosive rallies. This pattern, visible on longer-term charts, has formed again over the past several months.
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As shown in the monthly candlestick timeframe chart below, the rounding bottom played out during the time period between Dogecoin’s all-time high in 2021, the bear market in 2022, and the recovery phase in late 2024. The recovery led to Dogecoin pushing to new highs since 2021, which was probably the start of the parabolic rally phase. However, this time around, the anticipated parabolic rally was temporarily interrupted by a strong resistance zone.
After reaching highs around $0.48 in December 2024, Dogecoin saw a rejection that has seen its price going on a correction path until it reached $0.1477 in early March. But rather than breaking below, this level acted as a solid support. Since then, the price rebounded slightly and has recovered to $0.2 at the time of writing. With this in mind, the analyst predicted that the bullish cycle is intact, with the parabolic leg of the pattern expected to unfold anytime soon.
Monthly Candle Needs To Close Above Support
Right now, the most important step is for Dogecoin to close its monthly candlestick for March above the key support level established during the recent market correction. If this is successful, it will certify 100% that a bullish parabolic rally will follow. The analyst also pointed out two important levels for Dogecoin in the coming weeks and months: $0.15 and $0.5. The $0.15 level was tested during Dogecoin’s sharp pullback earlier this month, when the price dipped to as low as $0.1477.
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$0.15 now acts as the support level that should not be broken. The longer Dogecoin tests this support level, the longer the delay for the parabolic rally. Fortunately, the recovery from that zone has added technical strength to the argument that buyers are going to step in at that level.
Meanwhile, $0.5 is identified as the primary resistance target ahead. Breaking through that resistance will confirm the start of a full-fledged parabolic rally, similar to the one that sent Dogecoin to its all-time high in 2021. At the time of writing, Dogecoin is trading at $0.2052, up by 10.8% in the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
