The Dogecoin price action is similar to that of January and March. On both of those occasions, DOGE rallied 1000%. So is a new record price possible soon?
Dogecoin is trading at $0.193070, higher by $0.001585 (0.82%).
Although Cryptocurrencies are hardly flying, there are signs that a tentative recovery is underway. Bitcoin and Ethereum have stabilised from the weakness earlier this week and are turning higher, inspiring rallies across the crypto complex.
In some parts, the returning confidence is due to Elon Musk’s appearance at this weeks ‘The B word’ Bitcoin conference, where he revealed a personal holding of Dogecoin amongst others.
As a result, DOGE has reversed from Tuesday’s $0.159350 low point, increasing its market cap by $4 billion to just north of $25b at the time of writing.
Furthermore, the Dogecoin price is in the process of breaking out of a descending triangle formation. Moreover, the last two times this happened in 2021, DOGE went parabolic.
Of course, It may be a little premature for the bulls to celebrate, but the early signs are certainly encouraging.
DOGE price forecast
Looking at the daily chart, three clear descending triangle patterns are visible.
The first spanned January 2020 and was the catalyst for a 1,054%, 2-day rally from $0.009000 to a previous all-time high of $0.100409.
This ATH marked the start of the second descending pennant, which ran from the 29th of January until the 1st of April. Subsequently, when the Dogecoin price broke clear of this formation, a 1,300% increase ensued, which ultimately topped out at $0.776047 on the 3rd of May.
This brings us to the present day, where DOGE attempts to clear the resistance of a descending trend line at $0.182230. Furthermore, Dogecoin has recovered the 200-day moving average at $0.184246.
A close above $0.018426 would confirm the bullish breakout and suggest DOGE can advance to the 50 DMA at $0.253878, with the potential for an extension to the 100 DMA at $0.322541. And considering the performance in January and April, the Bulls will be hoping for a similar outcome.
However, should the Dogecoin price decline beneath Tuesday’ low, the bullish outlook becomes invalid and likely hands momentum back to the bears.