With the growing bullish market sentiment, Dogecoin has flipped positive as the popular dog-themed meme coin slowly builds on its newfound upward momentum. Several technical signals are starting to unfold on the DOGE’s chart, hinting at a possible continuation of the renewed upside movements.
Bullish Move Puts Dogecoin On Track For A Rally
Following a period of heightened bearish performance, Dogecoin has ventured into a bullish state as it targets the next key resistance located at the $0.17 level. Given that the broader crypto market maintains its current optimistic condition, DOGE could retest this key level in the upcoming days.
Delving into Dogecoin’s current price action, Trader Tardigrade, a seasoned technical expert and investor, has drawn attention to a signal that suggests that the meme coin is set for a bullish phase. Dogecoin is showing early indications of a possible recovery, and a recent positive move that reinforces the argument for an upcoming uptrend.
In the 1-hour time frame chart, Trader Tardigrade revealed that DOGE has formed a hidden Bullish Divergence. This critical move is observed on the Relative Strength Index (RSI) chart, a key momentum indicator.
With this key technical signal emerging, Trader Tardigrade believes that the development could indicate a greater chance of an impending upward trend continuation. A hidden bullish divergence is an indication of a continued uptrend despite a brief price decline.
Specifically, this move occurs when a momentum indicator, such as the RSI or MACD, produces a lower low as seen on the DOGE’s chart. Since the divergence often precedes upward movements and price spikes, Trader Tardigrade’s forecast of a continued rally is likely to materialize in the short term.
Past Trend Hints At A Massive Upsurge For DOGE
Even though Dogecoin has fallen sharply from its yearly high of $0.48, the meme coin is still trending in an ascending trend line. Trader Tardigrade has highlighted a massive ascending support trend line in the 2-week time frame chart.
The 2-weekly chart shows that this key rising trend line has been forming for nearly two years, particularly from September 2023 till the current date. Such a trend line reflects Dogecoin’s robust resilience over the years despite several notable pullbacks.
Looking at the chart, this move to retest the ascending trend line appears to be a bullish one. In 2023, DOGE witnessed a rally after retesting this trend line. A similar result was also observed in September 2024, which ultimately led to the current yearly high of $0.48.
Considering past scenarios as the meme coin retests the trend line once again this year, Trader Tardigrade is confident that a notable rally could be on the horizon. With each scenario resulting in a bigger upward move than the last, DOGE’s price is likely to experience a sharp spike beyond its yearly high and potentially revisit its present all-time high of $0.73.
