During the last hours of Thursday, Dogecoin experienced a notable decline as the broader crypto market retraced, causing its price to revisit the $0.16 mark, a level not seen in several months. Despite the worrying shift in trend, DOGE’s medium-term and long-term outlook remains bullish as crypto analysts advocate for an imminent parabolic surge.
A Potential Moonshot For Dogecoin Around The Corner
Dogecoin’s waning price action has intensified following the recent decline observed across the broader market. However, Trader Tardigrade, a seasoned technical expert and investor, has outlined a key development on the DOGE’s chart that hints at a possible shift in the trend toward the upside trajectory.
In his analysis shared on the X (formerly Twitter) platform, Trader Tardigrade highlights that the dog-themed meme coin is showing signs of a major upswing even as prices waver. His analysis is backed by a historical bullish signal that preceded substantial price spikes for DOGE in the last two attempts within a yearly period.
Following a period of relative strength, this bullish signal has resurfaced on the weekly time frame chart, increasing the likelihood of a notable impending parabolic surge. It is important to note that the trend often aligns with key signals from the DOGE/BTC chart.
As seen on the weekly chart, lower lows are being formed by the DOGE/BTC pair prior to each Dogecoin huge pump within the past year. However, these significant bullish moves tend to be more effective once DOGE’s price begins to trend upward on the weekly chart.
Presently, Dogecoin’s weekly price action reveals that the meme coin is at a pivotal juncture, and the DOGE/BTC pair seems to have formed new lower lows. With the signal repeating itself, the expert is confident that a massive pump is imminent, possibly pushing DOGE’s price beyond the $0.70 mark and toward a new all-time high.
DOGE To Develop A Bullish Divergence
As DOGE hovers near key support levels, key momentum indicators signal positive price movements, suggesting the current bearish movement may be brief. Dogecoin’s Relative Strength Index (RSI) has reached a vital point that is likely to strengthen its upward outlook.
According to Trader Tardigrade, DOGE is heading back to the previous swing low, while the RSI indicator displays a higher low after a sharp decline. The expert contends that this signal may result in a bullish divergence, which would suggest that the selling momentum has weakened.
A bullish divergence that typically occurs when an oscillator falls to hit a new low and prices drop to a new low signals a potential upward trend reversal after a downtrend. As a result, Trader Tardigrade noted that DOGE is showing an early sign of a bullish reversal, triggering the beginning of another major rally.
Featured image from Getty Images, chart from Tradingview.com
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