Dogecoin has been trading steadily over the past 48 hours by holding its ground around the $0.21 to $0.23 range. Although the meme coin leader is down by about 12.8% in the past seven days, it has managed to stay above $0.21. This resilience is highlighted as a higher low on the 5-day candlestick timeframe chart, and according to a technical analysis by crypto analyst Javon Marks, Dogecoin’s next major move may be far larger than most expect.
Technical Setup Points To $0.6533 Breakout
According to a technical analysis shared on the social media platform X by crypto analyst Javon Marks, Dogecoin’s price action has created another higher low on the 5-day candlestick timeframe. The most recent higher low is part of a trend that has created a series of higher lows since 2024.
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The pattern of higher lows suggests that buying pressure is outweighing selling pressure, even in times of market weakness. Furthermore, it means Dogecoin is creating new price floors after each rally and subsequent rally, which strengthens the case for a continuation rally. In this case, the two most recent rallies were in the middle of July when the Dogecoin price broke above $0.27, and another rally in August when it touched $0.25 very briefly.
Despite the correction that followed both rallies, the candlestick chart indicates that these lows were higher than previous highs and corrections. Now, according to Javon Marks, the immediate breakout target has been identified at $0.6533, which would represent a gain of more than 170% from the current price level. This target is derived from the technical setup of the holding breakout structure that Dogecoin has been playing out for many months.
$1.25 Comes Into Play After Breakout
If Dogecoin were to reach the $0.6533 breakout target, it would be its strongest bullish rally since early 2021. However, it would still fall short of its all-time high of $0.7316.
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The analyst further predicted an even more ambitious scenario. Once the $0.6533 breakout target is achieved in this scenario, Dogecoin could extend its rally towards $1.25. Such a move would confirm a major shift in its long-term trend and create more consistent higher highs and higher lows across the 5-day candlestick timeframe chart and above the much-anticipated $1 price level.
A rally of this magnitude would not only confirm Dogecoin’s standing as the leading meme cryptocurrency but also reintroduce its price action into breaking multiple all-time highs. It would also translate to a 490% surge from the current price level.
Nonetheless, the first step is for Dogecoin bulls to convert its higher-low structure into a decisive breakout. At the time of writing, Dogecoin is trading at $0.2131, down by 2% in the past 24 hours.
Featured image from Getty Images, chart from Tradingview.com
