- Dogecoin price has been on a downtrend for nearly nine months.
- DOGE holders wait for another breakout after the last one triggered a 163% rally.
- A breakdown below the $0.0495 support level will invalidate the bullish thesis for the meme coin.
Dogecoin (DOGE) price has remained bearish since May 2021, with the exception of a massive bullish move in October 2022. Despite the scale of this move, it was undone and DOGE went back to being bearish. But the recent price action suggests that this dog-themed cryptocurrency is likely coming back for another breakout.
Dogecoin price is ready to rally
Dogecoin price set up five distinctive lower highs on the weekly time frame between May 2021 and October 2022. On October 24, 2022, there was a massive spurt of buying pressure that caused DOGE to breach its long-term downtrend.
This Dogecoin price move clocked a whopping 163% gain in under two weeks and set up a local top at $0.1580. Since this point, DOGE has set up five lower highs.
Dogecoin price has recovered above the $0.0707 hurdle and flipped it into a support floor. If history repeats now, DOGE bulls could easily propel the meme coin to the next key hurdle at $0.1060. But for this move to happen, the dog-themed crypto needs to recover above the intermediate hurdle at $0.0814.
Since Dogecoin price currently trades at $0.0707, a retest of the $0.1060 hurdle would constitute a 50% gain. But if bulls are persistent and the retail hype is high, DOGE could rally higher and tag the $0.1590 hurdle or $0.1710, constituting nearly 140% in gains.
The Awesome Oscillator (AO) has been slowly receding and attempts to recover above the zero-line, signaling a resurgence of buyers as bears weaken.
The Relative Strength Index (RSI) also knocks on the mean line at 50 from below, indicating a comeback from the buyers.
The Wave Trend indicator has also produced a bullish crossover just above the oversold region, signaling yet again an optimistic outlook.
DOGE/USDT 1-week chart
Meme coins are key to crypto cycles
While Dogecoin existed in 2013, it only caught mainstream attention in the 2017 bull rally that saw it rallied from $0.000219 to a peak of $0.0175, clocking 7,890.87% in gains. Since then, meme coin has become an integral part of the crypto market cycles. After the 2017 bull cycle, the next rally occurred in 2021, where Shiba Inu (SHIB) caught attention. It was the first meme coin copycat or Dogecoin competitor that caught traction.
This dog-themed crypto, aka SHIB, rallied a whopping 1,636% in the latter half of 2021. During the same period, DOGE rallied a mere 65% since it was starting a major downtrend.
SHIB/USDT 1-day chart
Regardless, the start of a new rally brings in new capital that is more than likely to invest in meme coins. With the support of Twitter owner Elon Musk, Dogecoin price could indeed more than double should it break its nine-month downtrend.
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