Dogecoin (DOGE), the popular meme-inspired cryptocurrency, may be on the verge of another significant price surge. Crypto chart analyst Ali Martinez has pointed out that a bullish signal is emerging, which has historically led to 90% to 180% gains for DOGE. This key technical indicator could soon trigger a major price rally, much like the ones seen in previous instances.
Is a Bullish MACD Crossover Coming?
According to Ali Martinez, the Moving Average Convergence Divergence (MACD) indicator, a widely followed momentum signal in technical analysis, is showing signs of another bullish crossover on Dogecoin’s weekly chart.
The last two times Dogecoin experienced a MACD bullish crossover on the weekly chart, the token rallied by 90% and 180% respectively. Now, the crypto community is abuzz as another potential MACD bullish crossover is forming. If history repeats itself, DOGE could be on track for yet another impressive price increase.
While the exact timing of the breakout remains uncertain, investors are closely watching the charts for this important indicator to confirm.
Dogecoin’s Yearly High and Correction
Back on March 28, 2024, Dogecoin hit its yearly high of $0.22 after completing a five-wave pattern that began in October 2023. However, following this impressive rise, DOGE entered a prolonged correction phase, forming a descending triangle. Despite this dip, the current technical setup suggests that the correction could be nearing an end.
Can DOGE Reach New Highs?
As Dogecoin climbs higher, analysts believe wave 3 of its upward trend has been completed, reaching the 1.618 Fibonacci extension level at $0.13. The next target could be the 2.272 Fibonacci extension level, around $0.144, indicating a new higher high might be on the horizon.
The breakout and retest of the previous resistance, now acting as support, further strengthens the bullish outlook for DOGE. Currently, Dogecoin is trading at around $0.11, reflecting a slight drop in its price observed in the last 24 hours.
