Dogecoin price is set for “parabolic movement”, according to analyst

Currently priced at $0.1622 after a 5% drop on the 24-hour chart, Dogecoin (DOGE) is still up 50.10% over the past month and up 16.36% over the past week.

In the last year, Dogecoin has overtaken it Bitcoin and Ethereum, with an impressive 129% gain, beating 69% of the top 100 crypto assets by market capitalization.

1 day DOGE price chart. Source: CoinMarketCap

The bullish setup of the meme currency has become the talk of analysts and traders, fueled by strong technical indicators. Trading above its 200-day simple moving average – a key level that often signals sustained momentum – DOGE has shown resistance with 19 green days out of the past 30.

This upside stability combined with high liquidity sets the stage for a potential breakout beyond current resistance levels.

DOGE’s parabolic potential

Dogecoin’s monthly chart displays a classic “Falling Wedge” pattern identified by trader and analyst Tardigrade Merchant. Known for its predictive power in technical analysis, the Falling Wedge pattern is often seen as a bullish reversal signal, especially when followed by a breakout as seen here.

“Parabolic move follows bearish breakout,” Tardigrade said, suggesting DOGE could be setting up for a strong upward trajectory. In technical trading circles, this breakout pattern has historically been associated with rapid price increases as market sentiment shifts from consolidation to accumulation.

Market experts predict the next big step for DOGE

Several seasoned analysts are identifying technical levels that could serve as springboards for the next big rally. Altcoin Sherpaa respected voice in crypto trading circles stated, “If you get a $0.16 entry for $DOGE, you’ll make a lot of $$ imo.”

Suggesting a setup at $0.16 is a solid base for traders to accumulate positions in anticipation of higher moves.

Supporting this optimistic outlook, AMCryptoAlex RECORDED that DOGE recently pumped 70% over three weeks before pulling back 15%, indicating a healthy consolidation that could precede another rally. As Alex sees it, Dogecoin is “preparing for the next stage” with a target around $0.20.

This classic pattern—in which a sharp price rally is followed by a controlled pullback—often indicates that buying pressure is absorbing selling interest, setting the stage for further gains.

Dogecoin is approaching the Golden Cross

Perhaps the most significant technical development on the horizon is Dogecoin’s potential “Golden Cross,” a pattern in which a shorter-term moving average crosses over a longer-term moving average.

This signal, often seen as a precursor to sustained rallies. Analyst Elja noted: “$DOGE Golden Cross is approaching. The last time this happened, DOGE pumped 21,000% in just 5 months.”

In a market where high-frequency traders and algorithmic patterns respond quickly to such technical signals, a golden cross can attract both institutional and retail buying interest. The impending crossover could thus act as a magnet, attracting liquidity from market participants who see it as a signal of broader bullish trends in the DOGE market.

For traders watching this rally, several key levels are worth monitoring. Dogecoin is currently testing resistance around the $0.16 level, with analyst targets set around $0.20. If DOGE breaks this resistance, the next price action could push it into a new trading range, potentially signaling a bigger change in its valuation.

For downside protection, the support area near $0.14 provides a cushion where traders can place stop losses to limit exposure given the high volatility typically associated with meme currencies.

Additionally, with DOGE displaying robust liquidity and community-driven momentum, the setup remains favorable for those looking to capitalize on short-term moves while hedging for potential pullbacks.

Featured Image:

Jiri Hera. Golden Dogecoin Coin, Dogecoin Cryptocurrency, Doge Cryptocurrency. Digital image. Shutterstock.