Key Points:
- Dogecoin’s price previously surged by 340% after a bullish crossover, which is now re-emerging.
- A double bottom pattern suggests Dogecoin could climb towards $0.48.
- Optimistic market observers foresee potential breakouts targeting $0.50–$1.
The Moving Average Convergence Divergence (MACD) indicator for Dogecoin (DOGE) signaled a positive trend in late 2024, leading to a substantial price increase of over 330% for DOGE within weeks.
A similar pattern is developing currently in July, increasing the likelihood of a breakout in the short to medium term.
Historical Dogecoin Rallies Show Significant Gains
The MACD indicator, a widely used tool in technical analysis, helps traders assess the strength, direction, and longevity of an asset’s price trends.
The weekly chart is showing what analysts are calling a “bullish cross,” as illustrated below.
Related: Price predictions 7/22: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, HYPE
Historically, Dogecoin has demonstrated a tendency to experience rapid growth when the MACD line (blue) surpasses the signal line (orange). The memecoin saw gains of 273% in Q4 of 2023 and 343% in Q4 of 2024 following this pattern.
“$DOGE weekly MACD bullish cross has materialized,” according to analyst Cas Abbé, commented on X (formerly Twitter) on Wednesday, suggesting:
“Historically, DOGE has jumped after such a golden cross, implying bigger moves may be ahead.”
“The last occurrence triggered a significant price surge,” noted analyst Mikybull Crypto, mentioned.
Dogecoin’s current chart structure indicates a higher probability of an upward move, contingent on a definitive breakout above certain critical levels.
Establishing Crucial Support for Dogecoin’s Price
The emergence of a double-bottom pattern following Dogecoin’s exit from a prolonged downtrend supports an increasingly bullish outlook, targeting potential gains towards $0.478, representing a 90% increase from current levels.
Analyst CipherX expresses optimism for even larger gains, citing substantial support around $0.20 and $0.22 within the fair gap value (FGV).
“After a dip below the lower FVG, Dogecoin’s price has recovered, now showing aggressive upward momentum,” CipherX posted on X.
CipherX’s analysis refers to the FVG formed during Dogecoin’s rapid ascent earlier in the week.
Historically, this type of gap, formed during an uptrend, can serve as a support level if the price retraces.
CipherX anticipates a potential rise toward $0.48-$0.50 if this support holds.
“The primary target for liquidity lies between $0.48 and $0.50,” he stated, adding:
“The bullish momentum seems likely to continue as long as this FVG remains intact.”
As Cointelegraph previously reported, several on-chain and technical indicators hint at a potential Dogecoin surge to $1.1 before the close of 2025.
This content is for informational purposes only and does not constitute financial advice. Trading and investing involve risks, and individuals should perform thorough due diligence before making any decisions.