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Market analysts maintain their bullish stance on Dogecoin, with a recent analysis suggesting its price action is similar to XRP, which recently exploded.
Despite a modest 3.34% decline so far in December, Dogecoin has maintained its position above $0.40. After surging 160% in November, analysts anticipate another significant rally for the meme coin, with projections hinting at a potential move toward $1.15.
In a recent report, market analyst Jacob Canfield pointed out that Dogecoin’s current trajectory mirrors XRP’s behavior in lower time frames. For context, XRP has skyrocketed 52% over the past week to reclaim the $2 mark for the first time in nearly seven years.
Notably, DOGE could repeat a similar upside. Canfield’s chart confirmed the formation of higher lows, with Dogecoin holding prior resistance levels as support. This phase suggests a classical movement pattern that indicates a possible continuation of the upward momentum.
Canfield also highlighted the $0.48 level as an important pivot, while the $0.55 zone aligns with the 1.618 Fibonacci extension. This serves as the next major resistance area, while the $0.66 level represents a longer-term upside target at the 2.618 extension.
Dogecoin Ascending Triangle Breakout
Meanwhile, a separate analysis from Rekt Capital identified a daily ascending triangle structure for Dogecoin. His chart shows Dogecoin trading within an upward sloping trendline and horizontal resistance at $0.43.
Interestingly, this bullish continuation pattern implies growing buyer interest near support levels. According to Rekt Capital, a daily close above $0.43 was essential to confirm the breakout, which occurred recently. DOGE recorded this breakout hours later.
$DOGE
Dogecoin has broken out from the Ascending Triangle
Any dips into the top of the pattern, if at all needed, would constitute a post-breakout retest to confirm the breakout#DOGE #Crypto #Dogecoin https://t.co/SBX4clO1oS pic.twitter.com/047tyyuvlT
— Rekt Capital (@rektcapital) December 2, 2024
Following the breakout, the analyst predicted a potential retest of the $0.43 level to validate support. If successful, the retest could lead to further price growth. However, at press time, DOGE has broken below $0.43, currently trading for $0.4046, defending the $0.40 support.
RSI Suggests Stronger Momentum
Notably, despite the breakdown, prominent commentator Trader Tardigrade recently confirmed the bullish narrative when he examined the relative strength index (RSI) on the 4-hour chart.
According to him, recent RSI bounces from the oversold zone have led to significant price spikes of 40% and 200%. Tardigrade noted that each successive bounce is accompanied by increasing intensity.
#Dogecoin RSI has been bouncing up from the Oversold Zone on 4-hour chart🔥
The recent RSI bounces from the same zone brought $Doge to surge 40% and 200%. The pump intensity is even getting stronger.
It’s not surprising that $Doge will spike beyond 200% levels, which is above… pic.twitter.com/ZWdQG27w01— Trader Tardigrade (@TATrader_Alan) November 27, 2024
He believes if this trend continues, Dogecoin could achieve a rally exceeding 200%, which places the price target above $1.15. Such a move would echo Dogecoin’s historical performance.
These reports suggest that the $0.40 acts as DOGE’s immediate support level. However, on the upside, resistance stands at $0.55, with the $0.66 Fibonacci extension as a longer-term target. Should momentum persist, the $1.15 target highlighted by Tardigrade becomes achievable.