With optimism steadily returning to the cryptocurrency market, Dogecoin (DOGE) is emerging as a key focus, with technical indicators pointing to the potential for a major rally.
After months of consolidation, the meme coin appears primed for a substantial breakout, supported by historical price trends and strengthening momentum indicators.
A recent analysis by Trader Tardigrade highlights the Chande Momentum Oscillator (ChandeMO) as a key indicator, suggesting bullish outlook that aligns with Dogecoin’s most explosive rallies in previous cycles.
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ChandeMO hints at bullish momentum
The Chande Momentum Oscillator, which measures price acceleration and momentum, has historically been a reliable predictor of Dogecoin’s major price surges.
Trader Tardigrade’s analysis notes that the oscillator is currently flashing a bullish signal, echoing the conditions that triggered DOGE’s parabolic rallies in 2017 and 2021.
Notably, the ChandeMO indicates that DOGE has yet to reach the overbought levels seen in prior cycles, pointing to ample room for further growth. This technical confluence aligns with broader market recovery trends, further supporting the case for a sustained rally.
“Dogecoin is set to finish the final stage of the Bull Run.The Chande Momentum Oscillator (ChandeMO) indicates that $Doge still has a LONG way to go to reach the top in this cycle”
–Trader Tardigrade
Crypto analyst Ali Martinez also noted parallels between DOGE’s current setup and its past cycles. Martinez pointed out that during the last bull run in January 2021, Dogecoin surged into its second leg up following a 56% correction.
Over recent weeks, DOGE has experienced a similar 46% correction, potentially setting the stage for its next upward move as early as next week.
Whale activity and market sentiment drive a bullish narrative
Adding to the bullish sentiment is a notable uptick in whale activity. Recent data from Whale Alert reveals that 600 million DOGE tokens, worth $231.5 million, were transferred between unknown wallets in a single day.
Additionally, whales purchased over 200 million tokens over the past two days, as noted by Ali Martinez, further supporting rising market confidence in DOGE’s potential.
These significant transactions have sparked speculation that DOGE could be on track to reach new highs, with $2 in sight. Increased whale activity, coupled with rising on-chain engagement, has further supported the outlook for a potential breakout.
However, a more cautious short-term projection comes from Dogecoin enthusiast KrissPax, who suggests that DOGE could gain momentum and rally toward $0.60 in the near term, as reported by Finbold.
This move would mark a significant upward trajectory, but analysts warn that profit-taking at this level could trigger a pullback, potentially tempering the pace of further gains.
Dogecoin’s bullish narrative is further amplified by its association with Elon Musk, whose ongoing support for the coin has been a key driver of market sentiment.
Additionally, with Donald Trump set to return to office in January 2025, market observers are speculating on the potential impact of a pro-crypto administration on DOGE’s trajectory.
DOGE price analysis
At press time, DOGE is trading at $0.41, reflecting a one-day gain of over 7%. This uptick marks another positive step for the meme coin, which has seen impressive growth over the past week.
On the weekly chart, DOGE has surged by 22%, signaling a strong upward momentum amid renewed optimism in the cryptocurrency market.
For now, Dogecoin’s ability to sustain its rally will depend on broader market sentiment, increased retail interest, and maintaining its current momentum in the competitive digital asset space.
Featured image via Shutterstock
