Days back, Dogecoin, the largest dog-themed meme coin, witnessed a notable setback, causing a sharp drop in its price to critical support levels. Despite the recent waning performances, several key developments suggest that DOGE might be preparing for its next major rally to new heights in the short term.
A Robust Rally To Higher Levels Incoming For Dogecoin
Although Dogecoin is struggling to move upward, seasoned market expert and investor Kevin foresees a bullish outlook for DOGE in the near term. In his analysis, Kevin cited crucial indicators that point to the time frame that the much-anticipated next surge could begin for the meme coin.
Referencing past cycle trends and present price conditions, the expert’s prediction implies that the current consolidation phase might be ending shortly. With key indicators showing rising momentum, the expected upswing may fuel a much larger rally, pushing the meme coin to unprecedented levels.
Examining Dogecoin’s current price action, Kevin highlighted that DOGE has risen above the crucial level of 43 on the daily Relative Strength Index (RSI). According to the expert, Dogecoin never dropped below level 43 on the daily RSI during the last bull market.
Specifically, the 43 level on the daily RSI is critical since this was the bounce zone that resulted in three consolidation phases that led to new highs. Recent data shows that the meme coin‘s daily RSI has increased to level 47.
Furthermore, Kevin noted that throughout the last bull market, Dogecoin never lost the zero line on the daily Moving Average Convergence Divergence (MACD). This robust maintenance at the crucial indicator also served as a springboard to greater height when reached. Meanwhile, looking at the present price trend, the chart shows that the market will hit the zero line in about 3 to 4 days.
Should the ongoing cycle mirror these past cycle trends, the market expert contends the current consolidation period is likely coming to an end in at least a week. As a result, Kevin is confident that DOGE’s next rally toward higher levels may begin around Christmas. Thus far, investors and traders are monitoring key support levels for a potential rebound as they anticipate the next significant leg-up.
A Rebound On The Horizon?
Dogecoin could be regaining its upside momentum once more as Trader Tradigrade, a crypto analyst, has predicted a potential recovery, noting that DOGE’s daily RSI has entered a critical rebound zone. Trader Tardigrade forecast is based on a previous scenario that triggered notable price spikes.
The last time DOGE‘s daily RSI reached the zone in September this year, the meme coin experienced a local bottom at $0.095. Following the development, DOGE rose significantly to the $0.48 price level. Given the same degree of gain prediction, Trader Tardigrade believes Dogecoin might surge to $1.35 from the zone.
Featured image from Unsplash, chart from Tradingview.com
