Dogecoin Outlook: Analyst Forecasts Potential Breakout Amid Market Chop

• Technical indicators, including the 12-day Gaussian Channel turning positive for the first time since December 2020, indicate a bullish trend ahead for Dogecoin.
• Analysts point to a possible breakout scenario, with the meme coin’s price potentially surging by 79% to $0.27 if it breaks above current resistance levels around $0.17.

Despite the constant selling pressure faced by the world’s largest memecoin Dogecoin (DOGE), market analysts continue to remain bullish. As reported by Crypto News Flash, the on-chain data suggests some cooling in the selling pressure.

In a recent update shared with his 217,100 followers on the social media platform X, pseudonymous crypto trader Altcoin Sherpa expressed a long-term bullish outlook on Dogecoin (DOGE).

Altcoin Sherpa stated:

DOGE: Short-term charts may appear choppy with many memes, but I see strong potential in longer timeframes. Anticipating continued volatility in the near term, I advise against rushing into new positions at current levels. Patience is key. I believe significant gains could materialize later this year.

The crypto trader also stated that before Dogecoin gives any potential breakout, the DOGE price is likely to remain range-bound between $0.12 and $0.17. Over the past few weeks, the Dogecoin (DOGE) price has faced constant selling pressure at $0.17, after a fake breakout earlier this year in March 2024.

Another market analyst “@Kev_Capital_TA” cited an important indicator dubbed the 12-day Gaussian Channel that has turned positive for the first time in three years. The analyst noted that historically, the indicator turning positive suggests that the DOGE price would be on the cusp of a major breakout in the coming months.

Dogecoin for the first time since December of 2020, indicating that a potential strong bullish trend is in the cards in the coming months. This indicator has never failed in indicating these trend changes,

The Dogecoin Price Eyes A 79% Breakout

The Dogecoin (DOGE) price has been confined within a large descending triangle pattern over the past four months, typically considered bearish but with a 34% chance of breaking upward. Currently, DOGE’s price action is positioned below the 50-day moving average but above the 200-day SMA, indicating a struggle between buyers and sellers. The Relative Strength Index (RSI) at 46 suggests a support level.

As DOGE approaches the apex of the descending triangle, a crucial decision point looms. Strong support is evident in the $0.12–$0.13 range, tested resiliently three times in recent months.

A breakout above the triangle could propel DOGE by 79%, targeting $0.27, its highest level in three years. Conversely, a downside breakout would encounter support at $0.12, followed by $0.09 and $0.07. Also, as reported by Crypto News Flash, Dogecoin has had massive whale accumulation recently.

With a market capitalization of $20 billion, DOGE has seen a 7% increase in trading volume over the last day, indicating growing investor interest. Elon Musk’s decision a month ago to accept DOGE as payment for Tesla contributed significantly to its recent price surge.