Considering the growing optimism and the market’s resilience in recent weeks, major crypto assets like Dogecoin have gained notable upside. As a result, analysts predict that the dog-themed meme coin’s next price surge, which could potentially lead to new all-time highs, could be on the horizon.
Dogecoin set to replicate the parabolic rise of the past?
Dogecoin’s recent price action has led to an optimistic short-term outlook from Dima James Potts, a market expert who predicts that the meme coin is gearing up for a major parabolic move as market sentiment shifts in a promising direction. However, there is a catch.
Dima James Potts points out a crucial support level and trend seen in past performance that will serve as a catalyst for the expected parabolic move, paving the way for a breakout that could push the asset to new all-time highs reaches.
Observing the weekly time frame, the expert highlighted that DOGE reflects a similar pattern to previous cycles. He underlined that Dogecoin is witnessing green weeks, which highlights how DOGE’s performance historically improved after crossing the red and green lines, as shown in its chart.
Furthermore, he claims that a parabolic move typically begins when the meme coin crosses the yellow line of the weekly time frame on the chart. However, to confirm this breakout and trigger the beginning of the parabolic rise, Dogecoin must end the week above the $0.18 price level.
We draw attention to the last two cycles: DOGE experienced substantial growth of over 8.373% and 18.376% in the first and second cycles. Although the weekly closure over the yellow line for the third cycle has not yet taken place, it is expected to take place soon.
In the event that history repeats itself, James Potts has expressed confidence about a similar or even greater parabolic phase in this cycle, supported by several factors such as greater adoption and technological developments.
It is important to note that Potts expects the rally to be the same angle to a bold price of $35 at the height of this bull cycle. “This is not a good time to be bearish on Dogecoin. Your patience this cycle will soon be rewarded,” he stated.
DOGE’s newfound price strength is holding up
DOGE rises past key resistance levels as the The market still has favorable conditions. Currently, the meme coin is changing hands between $0.2 and $0.19, a level not seen since April of this year.
Considering the renewed price strength and growing confidence from retail and institutional investors, DOGE could be preparing for a dramatic change in momentum in the near term as a significant price breakout is expected in the near term.
Over the past day and week, DOGE has risen by more than 3% and 28% respectively. Despite the notable growth, investors could be in for a selloff given the nearly 50% drop in trading volume over the past day, suggesting bulls may be making profits.
Featured image from Unsplash, chart from Tradingview.com