Dogecoin analysts noted that the special pattern of the token price suggests a potential breakout may occur soon. According to Trader Tardigrade, the current Dogecoin candlestick chart looks similar to the price movements of 2020/2021. During this period, the token formed two bottom patterns before breaking out of the downward channel.
In 2020, Dogecoin's trading price was $0.002452 before it began to rise sharply. This also occurred in 2021, leading to a massive increase of 3,366%. Similarly, as of the time of writing, we can see that Dogecoin has two bottoms and a downward channel in the market. This indicates a potential breakout in the coming weeks. The current DOGE price suggests that if it reaches the $30 target, it could rise by 8,158%.
Currently, Dogecoin is trading at around $0.31 after a decline from the $0.40 range. However, some analysts predict that the price will soar to $30. If this happens, current holders will see a return of 8,158%. The current price action is consistent with previous historical trends, including lateral fluctuations before a strong rebound. This leads experts to predict that Dogecoin will also experience a similar rebound.
If Dogecoin breaks the $30 mark, its market capitalization will exceed $40 trillion. If this happens, Dogecoin will become one of the largest financial assets in the world. To achieve this valuation, favorable market conditions, high usage rates, and strong investor interest are needed.
Although some may think this target is unattainable, supporters of the goal state that Dogecoin's past performance is a good indicator of potential targets that could be achieved in the future. However, some believe that such a market capitalization is only possible if demand and liquidity remain at certain levels.
Another analyst recently predicted that DOGE's price could range between $3 and $15, which may be influenced by collaboration with Arkham Intelligence. Given Dogecoin's history of accumulation and breakouts, this opens the possibility of significant price increases. These patterns suggest that this phase may experience a strong rebound, potentially even breaking previous historical highs.
DOGE Price Analysis
The price of Dogecoin has been holding around $0.31 after a recent decline, putting the coin into a consolidation pattern.
Therefore, this price level represents a temporary decline in a long-term upward trend. In the weekly timeframe, the technical indicators are in a downward channel, which usually precedes an upward breakout under similar conditions.
From a bullish perspective, the Relative Strength Index (RSI) on the Dogecoin 4-hour candlestick chart is at 20.90, indicating oversold conditions.
This level is well below the midpoint of 50, indicating that selling pressure is increasing. Typically, bullish reversals occur after the RSI level drops below 30, as this indicates that the asset is oversold.
Source: TradingView
Traders believe that once the price begins to rise again due to increased buying pressure, this oversold condition presents a potential entry opportunity. However, Dogecoin's history indicates that after consolidation, it always experiences a strong rebound.
Experts predict that if Dogecoin performs similarly to 2020 and 2021, the coming weeks will see green candles.
