What is happening
Crypto valuations are surging amid signs of strength for Bitcoin and an increasingly favorable outlook on the macroeconomic front.
The Federal Reserve will be hosting its next meeting on July 29 and July 30, and bullish investors are betting the central bank's Federal Open Market Committee (FOMC) will issue a cut to the benchmark interest rate. If so, it could wind up powering a sustained bull rally for the cryptocurrency market.
Dogecoin has experienced a significant surge, rising 49% over the past nine days. This rally has been driven by smart money entering the market after liquidity grabs cleared out weak hands, confirming strong momentum.
The price action of Dogecoin has mirrored its legendary 2020 breakout setup, with the cryptocurrency jumping from around $0.164 to highs near $0.245. This behavior suggests that larger players may be accumulating Dogecoin in anticipation of another major move.
The rally in Dogecoin is not just driven by hype; it is supported by increased volume during key moves, indicating genuine buyer participation.
Dogecoin price prediction
This bullish breakout is reinforced by a rising RSI, which has crossed above the 70 level, indicating strong buying pressure and potential for continued upward movement.Source: TradingView
Additionally, the MACD histogram has turned positive, further supporting the bullish momentum thesis.
Eyes are on where Dogecoin trends next, with targets on the daily SMA 200 at $0.224 in the short term and further on at $0.40 if the rally continues. Dogecoin continues to attract attention, with discussion regarding whether it could ever hit $1. At current prices, a surge to $1 would mark a 426% increase — somewhat lofty given Dogecoin's momentum in this current cycle.
Renowned on-chain analyst Ali Martinez has hinted that Dogecoin might witness up to a 50% price increase. According to Ali, DOGE needs to hold above $0.16 for a possible bullish run to occur.
With the price flipping $0.18, market participants will have to hope history repeats itself and aligns with its pattern from 2023. In the interim, all eyes remain fixed on DOGE and whether it can find stability at this level and avoid further downward movements.
On the chart Ali shared, there is a long-term ascending trendline dating back to late 2023, and DOGE has continued to respect it.
Veteran trader Peter Brandt noted DOGE’s adherence to classical charting principles.
DOGE $DOGE has been an outstanding charting market following classical charting principles I am going to follow up in a few hours with a comparison chart that will blow your mind (as long as I remember to do so at age 78) pic.twitter.com/xKuLflPgea
— Peter Brandt (@PeterLBrandt) November 13, 2024
He highlighted a similarity between its current price action and a pattern observed in 2020, where a sideways accumulation phase evolved into an inverse head-and-shoulders (H&S) formation.
On top of that, a Fib retracement overlay shows that the $0.24 level lines up with a key zone between the 0.5 and 0.618 levels. Those are historically crucial ranges for price reaction.
If Dogecoin hits $0.18 with volume, it could skyrocket to $0.22, especially with the low liquidity that's currently in the meme coin market.
In the meantime, theDogecoin price chart versus Bitcoin just hit its lowest point in over a year, but for some, this drop is just the calm before the storm, with the popular technical indicator, Bollinger Bands, signaling a possible turning point.
In this setup, theDOGE/BTC pair is pretty much at the bottom of its monthly range right now, which according to chart history is a sign that the trend is about to change once the market starts looking beyond Bitcoin.