Dogecoin (DOGE) could be regaining its upward momentum, with a crypto analyst predicting a potential recovery. The forecast highlights that DOGE’s daily Relative Strength Index (RSI) has entered a critical rebound zone, signaling a possible price surge. This prediction is based on a previous scenario where similar RSI movements triggered significant price spikes for the meme coin.
According to Trader Tardigrade, the last time DOGE’s daily RSI reached this zone in September, it marked a local bottom at $0.095. Following this, Dogecoin experienced a substantial rally, surging to $0.48. Applying a similar degree of gain, Tardigrade predicts that DOGE could rise to $1.35 from the current RSI levels.
Recently, Dogecoin, the largest dog-themed meme coin, faced a sharp price decline, hitting critical support levels. Despite this setback, several developments suggest that the cryptocurrency may be gearing up for its next major rally in the short term.
A Robust Rally May Be Incoming
Although DOGE is struggling to gain upward traction, seasoned market expert Kevin offers a bullish outlook. In his analysis, he pointed to key indicators that suggest the current consolidation phase might soon end. Referencing historical trends and current price conditions, Kevin’s prediction implies that the anticipated rally could occur within a few weeks.
One critical observation from Kevin’s analysis is that DOGE has risen above the 43 level on the daily RSI. During the last bull market, Dogecoin never dropped below this level, which previously served as a springboard for three consolidation phases that led to new highs. Presently, DOGE’s daily RSI has climbed to 47, signaling rising momentum.
Kevin also noted that DOGE consistently maintained the zero line on the daily Moving Average Convergence Divergence (MACD) indicator during the previous bull market. This robust support acted as a launching point for significant price surges. Current trends indicate that the market will approach the zero line within 3 to 4 days, potentially setting the stage for another rally.
If the ongoing cycle mirrors past trends, Kevin predicts the consolidation phase could end within a week, with a rally likely around Christmas. Investors and traders are closely monitoring key support levels, anticipating Dogecoin’s next significant move to new heights.