A cryptocurrency analyst has revealed that the price of Dogecoin may be positioning for a significant upward move as it approaches a critical weekly closing level. The question is whether Dogecoin can close the weekly candle above the yellow line. With this line acting as a key resistance level for the price of Dogecoin, the analyst has predicted a breakout to $10 if Dogecoin can successfully close above this level.

Dogecoin aims for a breakout target of $10 at this critical level

Cryptocurrency analyst Dima James Potts shared a new Dogecoin price analysis via X (formerly Twitter), predicting that the number one meme coin could rise to $10, marking an all-time high in history. Based on the technical patterns observed in previous cycles, Potts revealed that Dogecoin's weekly chart is often used to decipher Dogecoin's performance.

He mentioned the green and red lines on Dogecoin's weekly chart, emphasizing that historically, when these lines intersect in a certain way, it tends to trigger positive or 'green' weekly performance for Dogecoin. Potts revealed that Dogecoin's price volatility is exhibiting the same pattern in the current cycle, suggesting bullish potential.

Interestingly, this repeating formation pattern is also related to the 'Yellow Line', which seems to act as a crucial resistance threshold for Dogecoin. According to Potts, when Dogecoin can rise above this line on the weekly chart, it often leads to a parabolic upward move.

With this in mind, the analyst suggested that if Dogecoin closes the week above $0.18, this could confirm the breakout and the beginning of the 'parabolic volatility' that has occurred in this history.

To further support his bullish price prediction for Dogecoin, Potts shared Dogecoin's past performance when it closed above the yellow line. After surpassing this level, the analyst revealed that Dogecoin skyrocketed over 8,373.35% in the first market cycle. Similarly, the meme coin surged 18,376.25% in the second cycle.

With past performance and these technical indicators, Potts believes that a similar trend could repeat for Dogecoin in this third cycle, with significant growth potential towards the $10 target.

Dogecoin's price dropped 8%, could it reach $10?

In the context of the forecast for Dogecoin's price to rise to $10, this cryptocurrency recently fell over 7.2%, experiencing volatility with swift changes in market conditions and sentiment. A rise to $10 would require Dogecoin to maintain significant upward momentum, driven by optimistic market sentiment and several bullish factors.

Several bullish factors have driven the price of Dogecoin higher. Aside from the strong community support and increasing wallet addresses, the price of Dogecoin has steadily risen due to the influence of SpaceX CEO Elon Musk and his proposal for the Government Efficiency Department (DOGE).

With Musk's DOGE soon to receive endorsement from the 47th President of the United States, Donald Trump, analysts believe this influence could push the price of Dogecoin above $10, soon reaching levels from $4 to $23.