The much-anticipated major rally for Dogecoin, potentially toward its present all-time high continues to face significant setbacks resulting from unfavorable market conditions. Given recent price developments, a crypto expert forecasts that the meme coin could see a back-to-back bull run soon.
Dual Bull Runs In Sight For Dogecoin
As Dogecoin regularly recovers from the recent market dip, Trader Tardigrade, a crypto expert and investor has outlined a promising outlook for DOGE within the short term. Based on the expert, DOGE’s price performance hints at multiple bullish scenarios that might push the meme coin toward uncharted territory.
Trader Tardigrade claims that DOGE looks to be gearing up for 2 consecutive rallies, bolstered by a promising chart formation that indicates robust upside momentum. Navigating the meme coin’s price motion on the weekly timeframe, he points to an alignment with the Gaussian Channel pattern.
Specifically, a Gaussian channel formation is a technical pattern that aids in spotting market trends and trading opportunities. With the formation indicating breakout possibilities, the analyst predicts notable price increases for Dogecoin because it draws closer to key resistance levels. Historically, this indicator has preceded significant upward movements, leading to two bullish runs as seen within the expert’s chart.
The chart shows that DOGE initially left the channel when it was red, after which retested the mid-channel line, allowing it to collect enough strength for an uptrend. Should past scenarios repeat, Trader Tardigrade is confident that Dogecoin will witness two consecutive major rallies to a recent all-time high shortly.
DOGE is presently experiencing the primary bull run, which suggests that more growth continues to be ahead because the second draws closer. At the tip of the second bull run, marking the upper line of the pattern, the meme coin might be valued at $3.
This anticipated move to $3 may represent a market top for Dogecoin in the continued cycle. Renewed optimism and growing confidence in DOGE amongst investors might spur upside strength in the approaching days, which can kickstart the much-anticipated move.
DOGE Transition Into A Bullish Period
Given the large market decline a number of days ago, DOGE faced bearish forces, causing its price to drop sharply. Regardless that this decrease has hindered positive movements, Trader Tardigrade highlighted that the meme coin may be regaining steam toward an upward trajectory.
Trader Tardigrade has spotted an impending Moving Average Convergence Divergence (MACD) bullish crossover on the 4-hour timeframe. Such MACD crossovers are typically a precursor for price recovery after a period of volatility. In consequence, the expert noted that DOGE is generating short-term momentum, shifting from bearish territory to bullish territory.
With Dogecoin gathering steam, the next key level to observe is the $0.35 mark. The $0.35 level has turned out to be a critical juncture resulting from the significant slice of short positions that might be liquidated. Technical expert Ali Martinez warns that about $766.45 million of short positions are vulnerable to liquidation once DOGE rebounds the value mark.
Featured image from Unsplash, chart from Tradingview.com