Dogecoin (DOGE), the meme-inspired cryptocurrency, has flashed a significant buy signal on its daily chart, hinting at the potential for a parabolic price run.
Despite a sharp pullback in recent weeks, this signal could mark a turning point for the asset, setting the stage for massive gains. Let’s dive into the analysis and what lies ahead for Dogecoin.
Recent Performance and Market Context
Dogecoin is currently trading at $0.32065, down 20% in the past week amid a broader market correction triggered by the Federal Reserve’s tempered outlook on rate cuts for 2025.
However, analysts believe the recent sell-off might be paving the way for a major rally.
- Current Price: $0.32065
- Weekly Decline: 20%
- Recent Low: $0.26216
TD Sequential Indicator Flashes Buy Signal
Crypto analyst Ali Martinez has highlighted that the TD Sequential indicator has flashed a buy signal on DOGE’s daily chart. This technical indicator is often used to predict price reversals by analyzing previous candle closes.
The buy signal suggests that DOGE could rebound from its current levels, potentially leading to a significant rally. Martinez’s analysis further aligns with historical patterns, suggesting DOGE may be poised for another explosive move.
Historical Parabolic Runs: 2017 and 2021
Dogecoin’s price history shows a recurring pattern of parabolic gains following substantial corrections:
- 2017 Rally:
- Initial Gain: 212%
- Correction: 40%
- Parabolic Rally: 5,000% to $0.01857
- 2021 Rally:
- Initial Gain: 457%
- Correction: 56%
- Parabolic Rally: To its all-time high of $0.74
- 2024 Setup:
- Gain: 400% to $0.48434
- Correction: 46% to $0.26216
If history repeats itself, DOGE could replicate these patterns and experience another 5,000% rally, potentially reaching the $18 price point.
Technical Analysis: Ascending Channel
Martinez’s weekly candle chart analysis reveals an ascending channel formation, a key feature of Dogecoin’s roughly four-year price cycle. The chart suggests that DOGE remains in a long-term bullish structure, consistent with its historical parabolic runs.
| Year | Initial Rally | Correction | Parabolic Gain | Target Price |
|---|---|---|---|---|
| 2017 | 212% | 40% | 5,000% | $0.01857 |
| 2021 | 457% | 56% | 5,000% | $0.74 |
| 2024 | 400% | 46% | 5,000% | $18.00 |
Risks and Challenges
While the setup for a parabolic rally is promising, investors should remain cautious. Key risks include:
- Market Volatility: Broader crypto market trends could affect DOGE’s trajectory, especially if Bitcoin and Ethereum fail to hold key levels.
- Federal Reserve Policies: Continued economic tightening could limit liquidity and dampen speculative runs.
- Resistance Levels: DOGE will face significant resistance at $0.48434 and $1.00 before a potential climb to double-digit price levels.
The Path to $18
For Dogecoin to reach $18, it would require sustained bullish momentum, community support, and favorable market conditions. The TD Sequential’s buy signal and historical price patterns suggest that DOGE could be on the verge of its next big move.
Investors should watch the $0.26 support level closely, as a breakdown below this point could invalidate the bullish setup. Conversely, a strong rebound above $0.48434 could confirm the start of a parabolic run.
