Dogecoin's price has surged nearly 150% since the beginning of this month, as the leading meme coin continues to experience a strong rally. Cryptocurrency analyst Alan Santana has provided insights into the momentum driving this rally and whether it is sustainable.
What is driving the Dogecoin rally
In a post on TradingView, Alan Santana referred to the monthly chart of DOGE to indicate what is really driving the Dogecoin rally. He noted that this month is a breakout bullish month and the first strong green month since the 2021 rally. Analysts specifically cited January 2021, when a similar action occurred, with a 'very strong bullish phase' following that.
In line with this, Santana asserts that just because the price of Dogecoin is witnessing this strong growth does not mean this is the end. Instead, the analyst claims that this very strong growth signals the beginning of a bull cycle, so investors can expect more parabolic rallies for Dogecoin in the future.
Santana urges skeptics to zoom in on the monthly chart. He reveals that this monthly trading session has the highest trading volume since 2021. Furthermore, this analyst mentions that this month has broken through long-term resistance and downtrends. Finally, he stated that this month has ended a three-year-long consolidation phase for Dogecoin's price.
The analyst notes that this three-year consolidation could lead to a very strong bull market, which is exactly what is happening. Therefore, Santana reiterates that regardless of how high Dogecoin's price goes this month, it is just the beginning. In the short term, the analyst warns that there may be fluctuations and changes, and even a strong correction could develop throughout the process.
However, Santana stated that such corrections are good as they will be used as an opportunity to take profits at resistance and buy back and reload at support. He added that Dogecoin's price has much more to give and there are no limits to how high it can rise.
In a post on X, cryptocurrency analyst Kevin Capital expressed a similar view to Alan Santana, suggesting that the most explosive phase could still occur for Dogecoin's price. This comes as he emphasizes that Dogecoin's price and the Relative Strength Index (RSI) are currently above the monthly timeframe concerning previous bullish cycles. He stated firmly
If the price of Dogecoin and RSI hold firm, then this DOGE rally is far from over and the most explosive phase is still ahead. Cryptocurrency analyst Trader Tardigrade recently predicted that Dogecoin's price could rise to $8.7 by August 2025 if it reflects the 2017 rally or rise to $30 by March 2025 if it follows the 2021 rally.