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Dogecoin (DOGE) has exhibited a heightened rally, surging over 363% since its August 5 low of $0.0805, currently settling at approximately $0.384. Following this upward movement, the token has surpassed the crucial 0.786 Fibonacci retracement level at $0.418, calculated from its 2021 high of $0.7488 to its 2022 low of $0.0491, indicating strong bullish momentum. This price action has brought DOGE to its highest levels since 2022, with analysts now focusing on the next major resistance at the 2021 all-time high of $0.748.
Technical Indicators Signal Bullish Continuation
Dogecoin’s technical signals are lighting up with bullish momentum, captivating traders with its explosive potential. The Relative Strength Index, for instance, has rocketed to an intense 84.87, placing it deep in overbought territory—a rare zone that has historically preceded substantial price movements. The last time RSI reached these heights was in April 2021, right before the cryptocurrency embarked on a massive surge to $0.748.
A key driver of this rally is the formation of a bull flag pattern, visible on the weekly chart. After consolidating, the DOGE token decisively broke out of the flag at $0.1088, clearing the 200-week moving average at $0.131 with conviction. This breakout is consistent with the bullish continuation seen in past rallies. According to technical projections, the breakout’s target aligns closely with $0.75, coinciding with its previous peak.
Will DOGE Break Its 2021 All-Time High?
As market analysts point to compelling technical signals fueling DOGE’s latest rally, a new wave of optimism has swept through the token’s community. One such example is Ali, a respected market observer who emphasizes the breakout from a classic bull flag pattern, a formation that has previously foreshadowed historic price surges.
#Dogecoin $DOGE is breaking out of a bull flag, which anticipates a 120% rally to $0.82 as long as the $0.37 support holds. pic.twitter.com/JPrGIzBnUn
— Ali (@ali_charts) November 19, 2024
If the $0.37 support remains intact, Ali projects the DOGE cryptocurrency could ascend to $0.82—shattering its previous resistance at $0.748 and carving new milestones. Adding to the bullish narrative, Trader Tardigrade turns attention to the Gaussian Channel, highlighting a rare and powerful signal.
According to the analyst, Dogecoin’s momentum is surging from the channel’s mid-band, a phenomenon witnessed only twice before in its history. Both previous instances—in 2017 and 2021—triggered jaw-dropping parabolic rallies, catapulting DOGE’s price by over 1,000% in mere months.
Critical Levels to Watch
On the upside, the next key level for Dogecoin lies at $0.50, a psychological barrier that aligns with historical resistance zones observed during the cryptocurrency’s ascent in 2021. A clean breakout above this level would open the door to a test of the 2021 all-time high of $0.7488. Beyond that, Ali’s projection of $0.82, based on the bull flag’s measured move, becomes a realistic target. Further upside could push the DOGE token toward the Fibonacci extension level of 1.272 at $1.57, signaling a possible new all-time high.
On the downside, immediate support sits at $0.37, which has held firmly as a critical level during the ongoing rally. Failure to maintain this level could see DOGE retrace to $0.2646, the 0.618 Fibonacci retracement level. Below that, the 200-week moving average at $0.131 serves as a solid support base, as it marked the launchpad for the current rally. A break below this level would signal a further bearish reversal, possibly pulling the cryptocurrency back toward its 2022 lows near $0.05.