Crypto Bio highlights bullish divergence on Dogecoin’s chart, saying Dogecoin millionaires will emerge in the next 2 to 3 months.
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Dogecoin (DOGE) has shown signs of a potential trend shift, following a period of sideways trading after peaking at $0.19. Over the past seven days, Dogecoin has risen by 12.0%, aligning with visible bullish sentiment.
On a 14-day basis, it remains up by 10.6%, with the current price resting at $0.1816.
Meanwhile, an analyst is pointing to key technical developments, including bullish divergence that would make more Dogecoin millionaires in the next 2 to 3 months.
Potential Trend Reversals
Two instances of bullish divergence have been highlighted on Crypto Bio’s Dogecoin chart, indicating weakening bearish momentum.
The first divergence, spanning from late June to August 2024, saw the price fall into the $0.07 to $0.09 range while the RSI indicator formed higher lows. This suggested a reduction in selling pressure, ultimately preceding a sharp rally into December 2024, where Dogecoin surpassed $0.40.
Following this pattern, a second bullish divergence has emerged between March and April 2025 amid the ongoing price turbulence. Again, Dogecoin’s price created lower lows, bottoming at approximately $0.1300.
However, the RSI posted higher lows, replicating the bullish pattern seen months prior. The analyst noted that Dogecoin appeared to be “waking up,” with a potential target near $0.5. Notably, he predicts that Dogecoin could reach this level in the next two to three months.
According to him, such a rally could make more Dogecoin millionaires. However, such investors might need to hold large amounts of the token. For context, if Dogecoin reaches this level, a $10,000 bag would only grow to $27,534, making a profit of $17,534. For a Dogecoin holder to become a millionaire at the $0.5 level, they would need to hold 2 million DOGE. These 2 million tokens are currently worth $360,000.
Parabolic Trendline Holds
Meanwhile, in addition to bullish divergences, analyst “abermix” observed that Dogecoin is currently respecting a long-term parabolic trendline. Drawn from a low near $0.05 in the 2022–2023 range, this ascending curve extends into 2025. Dogecoin’s price currently sits atop this trendline, maintaining it despite multiple breach attempts at $0.06, around $0.08, and again above $0.14.
Notably, the price remains slightly below both the short- and long-term exponential moving averages (EMAs). However, a minor rally above the $0.20 mark could lift DOGE, potentially confirming a trend reversal.
Falling Wedge Breakout Adds to Bullish Case
Adding to the technical backdrop, an analysis from April 25 detailed that Dogecoin broke out of a falling wedge pattern. This formation had contained DOGE within a downtrend for several months, with resistance tested at $0.28 in February and again at $0.16 in April.
The breakout near $0.18 was accompanied by increasing trading volume and a reclaim of key support levels, indicating the potential for a shift to an upward trajectory.
The analyst noted that the falling wedge pattern traditionally precedes a bullish reversal, and the current price action aligns with this historical behavior. With strong support noted around $0.143 and $0.16, the targeted move points toward the $0.46 level.
DisClamier:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect @Lachakari_Crypto opinion. Readers are encouraged to do thorough research before making any investment decision@Lachakari_Crypto is not responsible for any financial losses.
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