Since the beginning of this year, Dogecoin, the largest meme coin, has been riding the bearish wave, dropping from its yearly high of $0.48 to as low as $0.15. DOGE’s persistent descent is a testament to the highly volatile nature of the cryptocurrency market. Nonetheless, this substantial drop might be nearing its end as analysts identify developments that signal a possible price reversal.
DOGE’s Potential For A Major Rebound Continues To Rise
After a prolonged struggle to undergo a rally, Dogecoin may be gearing up for an upward move. Dogecoin’s recent price action shows that the dog-themed meme coin is showing signs of stabilization as several indicators signal a possible price reversal.
In an X (formerly Twitter) post, Ali Martinez, a seasoned technical and on-chain analyst, predicted an upsurge for DOGE in the short term. The analyst forecast hinges on key momentum signals like the Stock Relative Strength Index (RSI), which is starting to turn positive during ongoing volatility.
A Stock RSI indicator turning positive within bearish market conditions indicates growing upward momentum. As a result, Ali Martinez believes that the meme coin could be preparing for a major rebound toward higher levels.
Rally Imminent As Dogecoin’s Price Bottoms Out
Market expert and investor Trader Tardigrade also shared an analysis that hints at a potential rally, with the possibility that DOGE might have reached its bottom. His prediction has sparked optimism toward Dogecoin as technical indicators hint at a possible change in momentum and its price consolidating near critical support levels.
Delving into DOGE’s price action in the monthly time frame, Trader Tardigrade pointed out a massive Macro Channel formation. A Macro Channel is a technical formation that describes a long-term trend in which an asset fluctuates between two parallel trendlines, suggesting a possible consolidation or a persistent price action.
DOGE seems to have been following this huge chart pattern since the meme coin was introduced in the ever-dynamic world of cryptocurrency. While DOGE has followed the macro channel pattern, deviations have typically emerged at the edges of the channel.
However, if DOGE stays inside the macro channel without deviating this time, it may imply that a bottom has been reached. With Dogecoin reaching a bottom, Trader Tardigrade is confident that a massive upward move will follow.
Looking at the chart, the expert predicts the upcoming rally to reach as high as $4 and beyond, marking a new all-time high for the meme coin and probably its best bull run market cycle ever. When DOGE faces an upside direction, it signals the start of a renewed phase for prices and the confirmation of the current downward trend.
At the time of writing, DOGE was trading at $0.16, demonstrating a 24-hour decline of nearly 2%. Investors’ sentiment is becoming bearish, as evidenced by a more than 12% decrease in trading volume in the past day.
Featured image from iStock, chart from Tradingview.com
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