“If history rhymes, DOGE could be gearing up for a massive breakout,” one analyst stated.
The biggest meme coin by market capitalization has been hovering within a tight $0.08-$0.09 range over the past week, with one key indicator signaling a major breakout in the near future.
Most analysts believe a move north is the more likely option, but the bearish conditions of the crypto market may continue to suppress the valuation.
Prepare for Turbulence?
While DOGE has followed the new red wave passing through the digital asset sector, its daily decline has been much less painful than that of other leading cryptocurrencies, including Ethereum (ETH), Solana (SOL), and others.
One person who discussed the meme coin’s recent performance is the renowned analyst Ali Martinez, who noted that its Bollinger Bands have squeezed on the 24-hour chart. The indicator consists of a middle moving average and two outer lines that expand and contract in response to the latest price dynamics. Their tightening usually reflects a period of slight volatility, which could be a precursor of a major move in any direction.
In September last year, the Bollinger Bands squeezed again, leading to an impressive yet brief rally in the following days. It remains to be seen whether the same pattern will play out this time.
It seems like most industry participants who recently gave their two cents on DOGE expect a pump rather than a pullback. X user Hailey LUNC XRP argued that the asset “is sitting at a generational buying zone,” envisioning a future explosion beyond $10.
For their part, Trader Tardigrade thinks the meme coin’s current setup mirrors that observed in mid-2024, which was followed by a bull run. “If history rhymes, DOGE could be gearing up for a massive breakout,” they added.
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These Indicators Also Flash Buy Signals
Dogecoin’s Relative Strength Index (RSI) reinforces the bullish scenario. Its ratio has dropped to 22, indicating the token is oversold and could be on the verge of a short-term resurgence. The technical analysis tool ranges from 0 to 100, with anything above 70 considered a warning of an impending correction.
One should also take a look at Dogecoin’s exchange netflow. Over the past weeks, outflows have consistently surpassed inflows, suggesting that many investors have moved their holdings to self-custody and are in no rush to cash out.
