At the time of writing, the wider crypto market is looking rather bullish. Driven by the impressive surge in Bitcoin (BTC) prices following the 2024 U.S. presidential election, many altcoins and meme coins have followed suit.
Dogecoin (DOGE) is no exception — in fact, up to now, it has outperformed BTC on a year-to-date basis. Since January, BTC prices have gone up by 119.62% — during the same period of time, DOGE prices have rallied by 355.51%.
Arguably the most successful meme coin, DOGE has been buoyed not only by the BTC bull run — but also by the fact that the upcoming cabinet is set to be much more favorable to cryptocurrencies.
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On top of that, on November 12, the President-elect’s promise to open the Department of Government Efficiency, a presidential advisory commission set to be co-chaired by key Trump allies Elon Musk and Vivek Ramaswamy, ignited a bull run that has been sustained thus far.
Over the last thirty days, DOGE has seen returns of 152.05% and is currently trading at $0.4188 — however, as one trading expert has recently pointed out, a key technical indicator is suggesting that the bull run has just started — and that Dogecoin still has a long way to go.
DOGE’s price momentum oscillator suggests that the surge is just beginning
The price momentum oscillator (PMO) is a technical analysis indicator that calculates the rate of change of an asset’s price, smoothed twice with exponential moving averages to reduce volatility and provide a clearer insight into price action.
Understandably, in past instances where DOGE had gone on parabolic rallies, the indicator reached high levels — but on a weekly basis, the PMO is still at low levels, as detailed by pseudonymous technical analyst Trader Tardigrade in an X post on November 29.
While the disparity is apparent, readers should note that, like all technical indicators, PMO is not 100% reliable — it is a lagging indicator and smoothes out prices over time, making it liable to react slowly to rapid price changes.
On the other hand, there is plenty of evidence to suggest that this signal is legitimate — the wider market is bullish, and the asset appears to be in a parabolic growth channel that suggests a longer-term price target of $3.50.
Analysts are generally bullish on DOGE and believe that the asset has more room to grow — and if alt season finally kicks in, it is well-positioned to receive a huge influx of capital that would serve to bolster and prolong the rally.
Featured image via Shutterstock
