Market experts believe Dogecoin still has more room to grow despite recent stagnation in market trends and on-chain activity. The meme coin posted its first weekly green close in four weeks, gaining 6.5% from its previous closing price. This increase suggests it may be building momentum for another rally.
Key Indicators Signal Potential Surge
Dogecoin now trades near the 0.618 Fibonacci level, identified by analyst Ali Martinez as a critical zone for further movement. While it remains around this level, analysts expect additional upside potential. Martinez is not alone in his bullish outlook. Several experts predict DOGE ($0.26) will reach unprecedented levels before the current cycle ends.
Market analyst Trader Tardigrade pointed out that Dogecoin’s relative strength index (RSI) on the two-week timeframe indicates the top has not yet arrived. His analysis shows that in past cycles, a minor RSI retracement preceded a stronger move upward.
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The same trend occurred in 2016 and 2021, marking cycle tops. Currently, Dogecoin is only at its first RSI retracement, reinforcing expectations for a future surge. His chart suggests a possible 3,310% jump, pushing DOGE to $9.
Breakouts Indicate Strong Momentum
KrissPax, a well-known Dogecoin enthusiast, also supports the bullish outlook. He noted that since late 2023, DOGE has broken out of two consecutive descending channels, signaling strong momentum. The first breakout occurred in February 2024, peaking at $0.2290 in March.
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The second channel began immediately after that peak and lasted until November when the market saw another breakout following Donald Trump’s election win. This move pushed Dogecoin to its current cycle high of $0.4846. KrissPax believes another breakout is imminent, with Dogecoin still in a bull cycle. His analysis suggests the next price explosion could push Dogecoin beyond $1.
Despite optimistic predictions, Dogecoin’s on-chain activity remains subdued. A recent report reveals that whale transactions have dropped 88% since mid-November, affecting price movement.
For Dogecoin to sustain bullish momentum, large holders must return. Meanwhile, DOGE trades at $0.2639, reflecting a 1% decline in the last 24 hours.
The post Analyst Sees Dogecoin Gaining Momentum for a Massive Surge appeared first on FXcrypto News.
