Dogecoin’s (DOGE) technical setup is signaling a continuation of its recent momentum, which has seen the meme coin outperform Bitcoin (BTC).
With DOGE aiming to breach the $0.5 resistance level, the coin could get a boost from the fact that it has officially entered the bullish “Green Zone.” This phase has historically seen explosive growth for the meme coin, according to cryptocurrency trading expert Trader Tardigrade.
In an X post on December 1, the analyst noted that the “green zone” is associated with vigorous and rapid price movements. Historically, Dogecoin’s trajectory within this zone has led to monumental price surges, and this cycle appears no different.
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“The green zone tends to narrow after each cycle, indicating that the $Doge pump will be more vigorous and rapid in this zone,” the expert noted.
To this end, the trading expert called on investors to hold their DOGE, anticipating a potential rally to double-digit prices.
It’s worth noting, however, that even as DOGE emulates past movements, reaching double figures during this phase is not guaranteed, especially if the broader cryptocurrency market experiences significant declines.
Meanwhile, as reported by Finbold, the analyst previously suggested that DOGE’s bull run had “just started,” based on signals from the Price Momentum Oscillator (PMO) indicator.
Dogecoin’s price likely to outperform Bitcoin further
On-chain cryptocurrency analyst Ali Martinez also shared the bullish outlook. Martinez suggested that Dogecoin could skyrocket by 2,400% against Bitcoin.
This analysis is based on a breakout from a two-year descending channel, signaling potential gains from 0.00000438 BTC to 0.00009375 BTC.
Such a rally will continue Dogecoin’s impressive performance in 2024, during which the coin has gained nearly 360% year-to-date, compared to Bitcoin’s 119% return over the same period.
Notably, Dogecoin’s rally has been fueled by bullish optimism surrounding Donald Trump’s election and the influence of Elon Musk, who is expected to play a significant role in the upcoming administration.
DOGE’s possible ETF approval
Further bullish sentiment arises from the potential entry of institutional investors into Dogecoin through an exchange-traded fund (ETF).
In this regard, Alexander Blum, CEO of Two Prime Digital Assets, believes a DOGE ETF application is inevitable, driven by the success of Bitcoin ETFs.
However, Blum noted that regulatory approval remains uncertain. If the product gains approval, attention will turn to whether Dogecoin can replicate Bitcoin’s gains and potentially reach the $1 mark.
Nevertheless, the launch of a Dogecoin ETF might not be universally welcomed. Dogecoin’s volatility, limited utility, and whimsical origins could deter significant investment in such a product.
Dogecoin price analysis
At the time of writing, DOGE was trading at $0.42, with daily gains of about 0.5%. On the weekly chart, the meme coin has risen by 3.6%.
Considering all factors, Dogecoin still appears to be supported by bullish sentiment as it targets the $0.5 milestone. However, sustained bullish momentum in the broader market will be essential for DOGE to maintain its upward trajectory.
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