The Dogecoin price may be setting up for a significant rally as a technical analyst identifies a bullish breakout above the 50-day trendline. After months of compressed price action, the meme coin now appears poised to conclude its downtrend, igniting fresh optimism within the crypto community.
Dogecoin Price Set For Game-Changing Rally
Trader Tardigrade, a crypto market analyst, announced in an X (formerly Twitter) post on July 1 that the Dogecoin price has just broken above a critical 50-day descending trendline on its daily chart. With this new development, the analyst anticipates the potential start of a powerful upward price movement soon.
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Notably, the trendline breakout marks a significant shift in momentum for Dogecoin, which had been locked in a consistent downtrend over several weeks. The leading meme coin is currently trading at $0.17, having declined by almost 10% over the past month, according to CoinMarketCap.
With the potential end of this market downturn in sight, Trader Tardigrade suggests that DOGE’s microstructure is now beginning to show early signs of a bullish reversal pattern. In his price chart, the analyst notes that Dogecoin established a higher low, followed by a higher high after its breakout above the long-standing trendline.
More recently, a second higher low has formed, reinforcing the possibility that a new uptrend is underway. This structure, characterized by successively higher highs and lows, is often seen as the earliest confirmation that buyers could be regaining control of the market.
The breakout is also especially significant because it follows an extended period of lower lows and lower highs, with the 50-day trendline acting as a strong resistance barrier throughout. With that resistance now breached and early signs of a bullish market structure developing, Trader Tardigrade is increasingly optimistic about Dogecoin’s near-term prospects. If the current trend persists, it could signal the start of a sustained rally for the meme coin.
Analyst Says Dogecoin Below $0.2 Is Free
In a separate analysis, market expert Kaleo disclosed that Dogecoin’s current price below $0.20 presents a strong accumulation opportunity, implying that the meme coin is significantly undervalued when compared to its potential upside. Backing his view with a chart, the analyst projected that the Dogecoin price may be on the verge of a major breakout, with possible upside targets indicating a surge toward $1.5 and possibly beyond $ 3.50.
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Kaleo’s chart analysis highlights strong similarities between Dogecoin’s current market structure, following the April 2024 Bitcoin halving, and the 2020 breakout that preceded the meme coin’s historic bull run. In 2020, Dogecoin traded sideways within a Falling Wedge pattern for months before a breakout triggered a parabolic surge to fresh ATHs. The current price action exhibits a nearly identical setup, with the meme coin now emerging from a similar multi-year Falling Wedge, potentially setting the stage for another historic bull rally.
Featured image from iStock, chart from Tradingview.com
