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Dogecoin looks set for a massive rally to uncharted territories as a prominent market analyst identifies the recent MACD breakout as a catalyst.
Dogecoin is currently the best-performing asset among the top 10 crypto rankings by market cap in the last seven days. The largest meme coin by market cap has surged an impressive 12.63%, dwarfing gains from market leaders Bitcoin, Ethereum, and XRP.
With recent gains, DOGE has rebounded 37% from its intra-month low of $0.1432, rewarding investors who bought the dip. Nonetheless, according to analytical insight from prominent market watcher Trader Tardigrade, there may be room for higher prices.
Dogecoin Pump Incoming?
In a March 25 X post, Trader Tardigrade asserted that Dogecoin could extend its recent form to unprecedented price highs. This is because the doggy-themed meme coin’s moving average convergence divergence (MACD) recently defied a triangular consolidation.
DOGE’s MACD, which shows the difference between the 26-day and 12-day exponential moving averages (EMA), trended between a symmetrical triangle from early February and broke out last week, indicating a momentum shift. The analyst suggested this could spell a parabolic expansion, citing Dogecoin’s price action when a similar event occurred last year.
The perspective from an accompanying chart indicates that Dogecoin’s late 2024 surge materialized from a MACD breakout in September. Notably, the prominent meme coin surged 424% from the breakout point to its December high of $0.4846.
Trader Tardigrade suggests that a similar scenario could occur, predicting a massive rally to the psychological $1 price mark. For context, the dazzling run would see Dogecoin surge by 410% from its current market price.
Dogecoin Faces Key Resistance
Notably, DOGE’s bullish price action yesterday halted at $0.2061, with the token retracing 5% from the area. Prominent market analyst Ali Martinez identified the area as a strong resistance level and a roadblock to Dogecoin’s bullish flip.
In a recent analysis, he emphasized how crucial the $0.21 resistance zone is. The market watcher noted that the SuperTrend indicator suggested that Dogecoin would enter a bullish phase if it breached the resistance.
Meanwhile, Glassnode’s URPD metric supports this claim, highlighting the area as Dogecoin’s third-largest resistance level, only behind $0.07 and $0.17.
In the meantime, Dogecoin consolidates around the resistance, trading at $0.1960. If the supply wall breaks, Dogecoin could target prices like $2.28 and $6.