Following the annual DogeDay observance on April 20, the Dogecoin community might have another reason for optimism. An analyst highlights a historical chart pattern suggesting the popular memecoin could be positioning for a massive 500% price increase, mirroring a rally from a previous market cycle.
At the time of writing, Dogecoin (DOGE) is valued around $0.16132, maintaining its position above a crucial horizontal support level. The cryptocurrency has been trading sideways, largely between $0.14 and $0.16, since the end of March. This consolidation could indicate an accumulation phase following an extended downward trend.
The price is currently interacting with the 20-day Exponential Moving Average (EMA) at $0.16067. Observers are watching to see if it can push towards the $0.20 psychological resistance, a level established in early March and revisited later that month.
Technical indicators present a developing picture. The Relative Strength Index (RSI) is trending upwards and has surpassed its own moving average. However, it remains below the neutral 50 threshold, suggesting bullish interest is building but hasn’t yet taken full control.
Despite these flickers of strength, the larger market structure still appears bearish. DOGE has not yet achieved a convincing break above the 20-day EMA, and there hasn’t been a notable surge in trading volume, indicating that while market interest is present, it remains somewhat muted.
Despite the cautious signals on the daily chart, crypto analyst @Steph_iscrypto believes Dogecoin is setting the stage for a significant breakout. This forecast is based on a historical pattern observed during a prior cycle.
According to Steph’s analysis, DOGE previously experienced a 129-day downtrend before embarking on a spectacular rally of over 500%, vaulting from approximately $0.08 to above $0.40. The analyst points out that a similar 129-day downward phase (represented by 43 daily candles on the chart) appears to have recently concluded.
Steph posits that if history follows this pattern, the current consolidation could serve as the launching pad for the next major upward move for the altcoin. An April 19 social media update from the analyst noted a “Bottom signal flashing.”
Further potential fuel for a Dogecoin rally comes from increasing institutional focus. The U.S. Securities and Exchange Commission (SEC) is currently reviewing several applications for spot Dogecoin exchange-traded funds (ETFs). Filings from notable firms like Bitwise, Grayscale, 21Shares, and Rex Shares (in collaboration with Osprey Funds) are under consideration. Approval of these crypto ETFs could significantly increase accessibility and demand for DOGE, potentially acting as a major catalyst for the 500% surge projected by the analyst.