Given the growing optimism and market resiliency in the past few weeks, major crypto assets like Dogecoin have gained notable upward traction. As a result, analysts are predicting that the next price rally of the dog-themed meme coin potentially to new all-time highs could be on the horizon.
Dogecoin To Replicate Past Parabolic Rise?
Dogecoin’s recent price action has sparked an optimistic short-term outlook from Dima James Potts, a market expert who predicts that the meme coin is gearing up for a significant parabolic move as market sentiment shifts into a promising direction. However, there is a catch.
Dima James Potts points to a crucial support level and trend seen in past performances that will serve as a catalyst for the anticipated parabolic move, setting the stage for a breakthrough that might cause the asset to hit new all-time highs.
Observing the weekly time frame, the expert highlighted that DOGE is reflecting a similar pattern with past cycles. He underlined that Dogecoin is witnessing green weeks, which highlights how DOGE’s performance historically improved following the crossing of the red and green lines, as shown in his chart.
Furthermore, he claims that a parabolic move typically begins when the meme coin crosses the weekly time frame’s yellow line in the chart. However, in order to confirm this breakout and trigger the beginning of the parabolic move up, Dogecoin must end the week above the $0.18 price level.
Drawing attention to the last two cycles, DOGE experienced a substantial growth of more than 8,373% and 18,376% in its first and second cycles. Although the weekly close over the yellow line for the third cycle has not happened yet, it is expected to take place shortly.
In the event that history repeats itself, James Potts has expressed his confidence about a similar or even greater parabolic phase this cycle, supported by several factors such as larger adoption and technological developments.
It is important to note that Potts expects the rally to send the meme coin to an audacious $35 price mark at the peak of this bull cycle. “This is not a good time to be bearish on Dogecoin. Your patience this cycle will soon be rewarded,” he stated.
DOGE’s Renewed Price Strength Holds
DOGE is surging past key resistance levels as the market continues to see favorable conditions. At present, the meme coin is changing hands between $0.2 and $0.19, a level not seen since April of this year.
Given the renewed price strength and growing retail and institutional confidence, DOGE might be preparing for a drastic shift in momentum shortly, as a significant price breakout is anticipated to occur in the short term.
In the past day and week, DOGE has increased by over 3% and 28%, respectively. Despite the notable growth, investors might be going on a selling spree, considering the nearly 50% decrease in trading volume in the past day, suggesting that bulls might be taking profit.
Featured image from Unsplash, chart from Tradingview.com
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