The Dogecoin price has rallied by double digits after bottoming at $0.1275 earlier this month, and technicals suggest a potential 45% jump.
Dogecoin (DOGE) rose to $0.17 on Tuesday as Bitcoin (BTC), most altcoins, and the stock market bounced back. It remains 65% below its highest level in November last year.
Dogecoin price analysis
The daily chart suggests an eventual DOGE surge, potentially reaching the significant resistance level at $0.2285, which is 45% higher than the current level.
It has been forming a falling wedge pattern since November. The upper side of the wedge connects the highest levels since December 8, while the lower side links the lowest levels since November last year.
These two trendlines are now about to converge, which is typically where breakouts occur. DOGE has already moved above the wedge’s upper line, signaling a potential breakout. The bullish outlook is further supported by the formation of a double-bottom pattern at $0.1445. Additionally, the Relative Strength Index has crossed the neutral 50 level, indicating building momentum.
The Stochastic Oscillator has also surged into overbought territory. These technicals suggest that DOGE will likely rally in the coming days, especially if Bitcoin continues its rise toward the psychological $100,000 mark.
Potential catalysts for Dogecoin
Dogecoin has numerous fundamentals catalysts that may push its price up in the coming weeks. Paul Atkins has become the new Securities and Exchange Commission Chair, raising the possibility that he will approve a spot DOGE ETF. Grayscale and Rex-Osprey have applied for a spot ETF, which may lead to substantial inflows.
Further, DOGE price may do well as big whales continue to accumulate tokens. The chart below shows that the number of holders with between 100 million and 1 billion tokens has been in an upward trajectory.
Dogecoin may also gain from the ongoing slowdown in the U.S. economy. In a recent report, the IMF warned that Trump’s tariffs would impact both the U.S. and global economies. It projects global growth to slow to 2.8% this year, down from 3.3% in 2023, while the U.S. economy is expected to slow to 1.8% from 2.8% last year.
While a slowing economy is typically undesirable, it may actually help lift crypto prices by prompting intervention from the Federal Reserve. DOGE and other cryptocurrencies have historically performed well during periods when central banks are slashing interest rates.
