Dogecoin (DOGE) could be gearing up for a possible record high above $1, with the asset’s technical formation hinting at an incoming price breakout.
As things stand, Dogecoin is trading just below the $0.30 mark, and if the level is breached, the token’s next major resistance to watch stands at $0.58. Consequently, surpassing these levels could trigger a rally toward $1.80 or even $5.80, according to an analysis by prominent cryptocurrency analyst Ali Martinez in an X post on February 16.
“If Dogecoin is following a parallel channel, a breakout above $0.58 could set the stage for a move toward $1.80 or even $5.80,” Martinez said.
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According to Martinez, Dogecoin has followed a parallel channel, a technical pattern outlining price movement between two parallel trendlines. If DOGE breaks through the upper resistance at $0.58, it could confirm a bullish continuation, potentially leading to significant upside.
As per the expert, Dogecoin’s key area of $0.33 represents short-term resistance, while $0.58 is the critical breakout point. If DOGE surpasses this level, historical price action suggests it could accelerate toward $1.80 and eventually $5.80, aligning with previous high-volatility moves.
Indeed, if Dogecoin manages to trade at $5.80, the valuation would elevate the token’s market capitalization to $860 billion, potentially ranking the asset second behind Bitcoin (BTC), especially if Ethereum (ETH) records minimal growth.
Dogecoin enters rebound zone
Adding to the bullish Dogecoin price outlook, pseudonymous trading expert Trader Tardigrade noted in an X post on February 16 that the asset’s momentum indicators, including the Relative Strength Index (RSI), point to a possible rebound.
According to the expert, Dogecoin’s three-day RSI has entered the rebound zone, hinting at upside potential. The analysis highlighted a pin-like candle at a local bottom alongside a bullish RSI divergence—a pattern that preceded strong price surges in February and July 2024.
Notably, the RSI rebounded from oversold levels in both prior instances, aligning with DOGE’s price reversing to the upside. The latest setup mirrors these conditions, suggesting a possible trend shift.
The Dogecoin community has been targeting the asset to claim the $1 level, a target that now looks plausible amid anticipated institutional capital inflow into the asset. Specifically, there are expectations of a potential spot Dogecoin exchange-traded fund (ETF) approval.
The possibility gained momentum after the Securities and Exchange Commission (SEC) acknowledged Grayscale’s application, triggering a 240-day review before an official decision. If approved, the ETF would offer U.S. investors a simpler way to gain exposure to DOGE, possibly triggering an inflow of institutional capital.
DOGE price analysis
By press time, DOGE was trading at $0.27, plunging over 2% in the past 24 hours. However, the meme coin is up about 4% on the weekly timeframe.
At the moment, Dogecoin is exhibiting a mixed technical outlook. In the short term, DOGE shows bearish sentiment as it trades below its 50-day simple moving average (SMA) of $0.328. However, in the long term, it remains bullish, trading above the 200-day SMA of $0.235.
Meanwhile, Dogecoin’s Relative Strength Index of 42.17 indicates it is not overbought, leaving room for a rebound as the digital currency targets reclaiming its next immediate resistance at $0.30.
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