A few days ago, Dogecoin, the largest dog-themed meme coin, experienced a significant setback, causing acute decline prices to critical support levels. Despite the recent deterioration in performance, several key developments suggest that DOGE may be gearing up for another major rally to fresh heights in the near term.
A solid rally to higher levels for Dogecoin
Although Dogecoin is struggling to grow, seasoned market expert and investor Kevin predicts hopeful prospects for DOGE in the near future. In his analysis, Kevin cited key indicators that indicate the time frame in which the long-awaited next rise in the meme coin’s value may begin.
Referring to past cycle trends and current price conditions, the expert forecast suggests that the current consolidation phase may end soon. As key metrics show increasing momentum, the expected growth could trigger much more growth, pushing the meme coin to an unprecedented level.
Examining Dogecoin’s current price action, Kevin highlighted that DOGE has risen above the key level of 43 on the daily Relative Strength Index (RSI). According to the expert, Dogecoin never fell below the 43 level on the daily RSI during the recent bull market.
In particular, the 43 level of the daily RSI is critical because it was the bounce zone that resulted in three phases of consolidation that led to fresh highs. The latest data shows that the same cornerthe daily RSI rose to 47.
Additionally, Kevin noted that throughout the recent bull market Dogecoin has never lost the zero line on the daily moving average convergence divergence (MACD). This solid maintenance of a key indicator also served as a springboard to achieve greater heights. Meanwhile, looking at the current price trend, the chart shows that the market will reach the zero line in about 3 to 4 days.
If the current cycle mirrors the trends of the previous cycle, market experts say the current period of consolidation will likely end in at least a week. As a result, Kevin is confident that DOGE’s next rally towards higher levels could begin around Christmas. For now, investors and traders are monitoring key support levels potential rebound while waiting for another significant enhance.
Reflection on the horizon?
Dogecoin may once again regain its growth momentum, cryptocurrency analyst Trader Tradigrade stated predicted potential recovery, noting that the daily RSI DOGE has entered the critical rebound zone. Trader Tardigrade’s forecast is based on a previous scenario that caused significant price spikes.
One last time DOSEthe daily RSI reached this zone in September this year, and the meme coin hit a local low of $0.095. Following the development, DOGE’s price rose significantly to a price level of $0.48. Given the same degree of projected gains, Trader Tardigrade believes that Dogecoin may rise to $1.35 from the zone.
Featured image from Unsplash, chart from Tradingview.com
