Dogecoin has been fluctuating recently, maintaining a narrow price range around $0.17 while encountering ongoing resistance around the $0.185 mark. Despite several attempts to rise above, the meme coin struggled to gain significant traction—until the last day, inspired by Bitcoin’s resurgence above $100,000. Analyst Trader Tardigrade has observed a positive trend, suggesting that a notable increase for Dogecoin is expected and on track.
Dogecoin’s Expected Increase Linked to 29-Day Cycle
Trader Tardigrade noted that Dogecoin’s trading behavior reveals a consistent pattern. Analyzing the Relative Strength Index (RSI) alongside Dogecoin’s daily price movements shows that roughly every 29 days, a breakout occurs, leading to an upward trend.
This specific cycle has repeated thrice, each time followed by a significant price surge. The accompanying chart illustrates three clear breakout points in the RSI, all 29 days apart, preceding strong increases in Dogecoin’s price.
The observed cycle appears to be triggered by RSI downtrend breakouts. The first of these breakouts occurred in early March, followed by another in early April. Each instance saw the RSI breaking a descending trendline, pushing prices higher as the cycle ended. Now, with the latest breakout occurring after the completion of another 29-day cycle, Tardigrade believes Dogecoin is poised for another upswing.
Potential for DOGE to Exceed $0.23
The rationale behind Trader Tardigrade’s predictions stems from the behavior of the RSI. As a momentum indicator, RSI helps to indicate possible price reversals or continuations. Dogecoin’s RSI has repeatedly reset down since it fell below oversold levels on March 9. In past instances, this has led to gradual increases, ultimately breaking key resistance levels. Currently, the RSI breakout aligns with the timing of the previous rallies.
The chart’s green arrows indicate significant price spikes right after each RSI breakout, marking the beginning of bullish trends. If this pattern continues, Dogecoin could enter another upward phase, potentially surpassing the $0.20 mark. Projections based on historical movements suggest a target price near the psychological resistance of approximately $0.24, which aligns with other technical analyses, including a head and shoulders pattern observed on the daily chart.
Presently, Dogecoin is priced at $0.1971, representing a 9% increase over the last 24 hours and an 8.9% rise over the past week. This latest surge can be attributed to Bitcoin’s recent rally past the significant $100,000 level.
