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A prominent crypto analyst has recently highlighted the possibility of Dogecoin gearing up for a substantial upward move as it nears a pivotal weekly close. The key question on everyone’s mind is whether Dogecoin can close the weekly candle above a crucial resistance level, identified as the “yellow line.” If Dogecoin can achieve this, the analyst foresees a breakout that could propel the cryptocurrency to new heights, potentially reaching $10.
Dogecoin Eyes $10 Breakout Above Key Level
Renowned crypto analyst Dima James Potts has provided a fresh analysis of Dogecoin’s price trajectory, suggesting that the leading meme coin could soar to $10, marking a remarkable all-time high. Relying on established technical patterns observed in previous market cycles, Potts has revealed insights into the Dogecoin weekly chart, which has often served as a tool for predicting its performance.
Understanding the Technical Patterns
Potts referenced the green and red lines on the Dogecoin weekly chart, emphasizing that historically, when these lines intersect in a particular manner, it often signals a favorable or “green” weekly performance for Dogecoin. This current cycle exhibits the same pattern, hinting at the potential for upward price momentum.
The Role of the Yellow Line
Interestingly, this recurring pattern also involves a “Yellow Line,” which appears to serve as a critical resistance level for Dogecoin. According to Potts, when Dogecoin manages to surpass this line on the weekly chart, it frequently results in a dramatic upward movement. Potts suggests that if Dogecoin closes the week above $0.18, it could confirm a breakout and initiate this historically notable “parabolic move.”
Historical Performance and Future Predictions
To bolster his optimistic Dogecoin price forecast, Potts referenced Dogecoin’s past performance after closing above the yellow line. The analyst highlighted that during the first market cycle, Dogecoin experienced a staggering surge of over 8,373.35%. In the subsequent cycle, the meme coin skyrocketed by an astonishing 18,376.25%. Given these historical patterns and technical indicators, Potts remains confident that a similar trend could unfold for Dogecoin in this third cycle, with the potential to reach the $10 target.
Current Market Conditions: Dogecoin Price Drops 8%
Despite the bullish predictions of a Dogecoin rally to $10, the cryptocurrency has recently experienced a decline of more than 7.2%, reflecting volatility amid the rapidly changing market conditions and sentiment. Achieving the $10 milestone would necessitate sustained upward momentum, bolstered by positive market sentiment and specific bullish factors.
Factors Contributing to Dogecoin’s Price Movement
Several bullish factors are contributing to Dogecoin’s upward trajectory. Beyond its robust community support and an increase in wallet addresses, Dogecoin’s price has been steadily climbing due in part to the influence of SpaceX CEO Elon Musk and his Department of Government Efficiency (D.O.G.E) proposal.
The Influence of Elon Musk and Future Prospects
With Musk’s D.O.G.E anticipated to receive endorsement from the 47th US President, Donald Trump, analysts speculate that this influence could propel Dogecoin beyond the $10 mark, potentially reaching values between $4 and $23 in the near future.
