Bulls Target $0.5 As Dogecoin Readies For 1,000% Rally
Dogecoin has not has the most favorable few weeks on the market. Nonetheless, the asset has seen some upside this week with the price breaking above $0.23. It has not mirrored the growth seen in top rival Shiba Inu. But has been on a steady growth pace since trading opened for the week. It’s hard to accurately predict where the coin might be headed in the next few months. Although technical analysis points to a price spike.
Justin Bennett put out a bullish analysis for the asset. The report pointed to recent market trends putting the digital asset on a path to a breakout. This rally, he said, would mirror the growth pattern of previous breakouts and will play out over the next few months. According to Bennett’s analysis, all of Dogecoin’s movement in the last few months has led it to this month.
Dogecoin Preps For 1,000% Breakout
Bennett explained in his report that Dogecoin’s low momentum through the past few months has been a setup for this breakout. Slow months had characterized Doge’s price movements, dragging the price below $0.2.
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This kind of setup had been seen on the charts twice this year. The first had seen the price of the coin rally about 900%, while the second had been the most prominent. By the time the second breakout occurred, Dogecoin had rallied over 1,200% and this was when the digital asset had hit its all-time high over $0.70. The price target this time around may not be the same, but is expected to stick to the same pattern, leading to a 1,000% price rally.
Doge price trading at $0.236 | Source: DOGEUSD on TradingView.com
A caveat for this breakout does depend on whether the asset can break the $0.245 resistance point. Bennett said in his analysis that Doge would need to break above this price point for the setup to be complete.
However, trends show that the asset is ready for a price rally. It has not moved much in tandem with the recovery trends of bitcoin and the broader market. So it is expected that Doge would begin its run towards $0.32 and bulls are targeting a peak of $0.57.
Doge Price Movements
One thing Dogecoin does not have a lack of is supporters. Even with declining prices, Dogecoin holders have held on to their bags in hopes of a more favorable market. This support has translated to the value of the coin.
Expectations that the price of the asset would fall back to 2020 levels have fallen by the wayside. Instead, Doge has mostly held out above the $0.2 level, suggesting that this is the new bottom for the meme coin.
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The price struggled for most of last week and going into this week, momentum had dropped. It hit the week’s low of $021 on Tuesday. Then steadily recovered back up above $0.23, suggesting that Bennett’s $0.245 trigger will be hit before the week runs out.
Featured image from NewsBTC, chart from TradingView.com