Dogecoin has created a lot of waves in the cryptocurrency space, as experts point out its potential for a surge that could change the situation of this meme coin in the market. The coin surged over 160% in November after a standout month, with its current pattern appearing bullish, thus setting the stage for some profits.
Bullish patterns indicate potential benefits
According to new research, a tight flag pattern is emerging on Dogecoin's price chart. This unusual technical pattern typically means that people are very hopeful and a breakthrough may occur soon.
Trader Tardigrade states that this pattern often appears before significant price changes, prompting buyers to pay attention. If this pattern remains intact, Dogecoin could reach new highs. Some analysts suggest it could hit $1, which would be a 155% increase from the current level.
More ambitious targets also indicate even more significant events. Some predictions suggest that this bullish trend could push the price from $5 to $10 with Dogecoin. Supporting this optimism is the strong market enthusiasm and FOMO at the retail investor level. As this excitement is rising, many are waiting to see if Dogecoin can break out of its current consolidation range.
Market sentiment and technical indicators
People still believe that Dogecoin will increase in value, and there are several key indicators supporting this view. The relative strength index (RSI) is at 61.86, which means the price is still maintaining a positive trend despite having decreased from previous highs. This could mean that the price will stabilize for a short period. Dogecoin's price is also above the 50, 100, and 200-day exponential moving averages (EMA), supporting the upward trend.
However, attention needs to be focused on critical support levels. To continue on the upward path, Dogecoin will need to maintain above $0.35 and break through the resistance at $0.45. A successful breakout could open the door for higher price action and further reinforce a bullish narrative.
The big picture of Dogecoin
The growing development of the cryptocurrency market is bringing more scrutiny to Dogecoin's performance compared to Bitcoin. Some analysts predict that in the coming months, if this trend continues, Dogecoin will outperform Bitcoin by up to 2,400%. The formation of these bullish patterns occurs in a progressive manner, while the overall market momentum supports altcoins.
Meanwhile, Dogecoin is expected to end the year trading within a range from $0.385819 to $0.41998. This would lead to a decrease of -4.16% in DOGE's price compared to the current price, assuming the average price in December is $0.398415. In other words, short sellers could potentially make a profit of 7.19% if DOGE adheres to the prediction.