A major technical indicator has turned bullish for Dogecoin (DOGE) for the first time since December 2020, signaling a potential resurgence for the biggest meme coin. This shift comes amidst significant resistance and a narrowing trading range for Dogecoin.
Over the past few weeks, Dogecoin has struggled to break through the $0.18 resistance level, with selling pressure consistently emerging at this threshold. This resistance has constrained the price movement, particularly following a ‘fake out’ in late March. Nevertheless, the recent bullish signal offers renewed optimism for Dogecoin investors.
In a Sunday tweet, analyst “@Kev_Capital_TA” highlighted the so-called 12-day Gaussian Channel, noting that it has turned green on Dogecoin for the first time in more than three years. According to the analyst, this indicator, historically reliable in predicting trend changes, suggests that Dogecoin might be on the cusp of a strong bullish phase in the coming months.
“Dogecoin for the first time since December of 2020, indicating that a potential strong bullish trend is in the cards in the coming months. This indicator has never failed in indicating these trend changes.” He wrote.
Supporting this bullish outlook is an increase in large transactions involving Dogecoin. Popular crypto analyst Ali Martinez recently reported a significant rise in whale activity, with over 150 transactions exceeding $1 million recorded within 24 hours on June 7. This surge in high-value transactions indicates that major investors are accumulating Dogecoin, potentially in anticipation of a price surge. Interestingly, the pundit had earlier pointed out that since May 30, Dogecoin whales had purchased an additional 200 million DOGE, reflecting growing confidence among large holders.
In late May, Martinez also noted that market sentiment was as bearish as it had been in early February, just before Dogecoin experienced a dramatic 200% increase. This historical context provides hope that a similar price rally might be on the horizon.
Elsewhere, an analyst under the pseudonym “Trader Tardigrade” also weighed in, highlighting Dogecoin’s long-term price cycles. According to him, Dogecoin typically completes a cycle every 36 to 40 months, and September 2024 marks the 40th month since the last all-time high. According to the expert, if this pattern holds, Dogecoin could see a substantial bull run in the next few months, with the potential to surge significantly.
Meanwhile, other analysts are providing short-term bullish forecasts. Analyst “Dlaminisya” highlighted the $0.145 as a major support zone, stating he expects Dogecoin to rise to the $0.33-$0.35 range soon.
Similarly, in a post on TradingView, analyst “Vibranium Capital” revealed he anticipates a breakout, watching for a daily close above $0.18308, which could lead to further gains up to $0.57.
According to CoinMarketCap data, DOGE traded at $0.15 at press time, reflecting a 9.96% surge over the past 24 hours.
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