With the broader crypto market turning bullish again, Dogecoin, the largest dog-themed meme coin has shifted toward positive territory as it recovers above the $0.17 level. Many crypto experts continue to predict an impending price rebound, which means that DOGE’s renewed upward movement could be part of a larger uptrend.
A Price Rebound Imminent For Dogecoin?
Dogecoin is seeing renewed positive momentum, recording an over 5% gain in the last 2 days. As the price begins to show upward movements, Ali Martinez, a market expert and trader has forecasted an impending rally for DOGE, suggesting the continuation of the ongoing uptrend.
While Ali Martinez predicts a rally for the meme coin, it must maintain support at a critical price level. DOGE’s recent price action shows a potential trend reversal, setting the stage for a notable upsurge as bullish momentum builds up.
Martinez’s forecast is based on a massive Ascending Parallel Channel formation that is spotted on the weekly time frame. Looking at the chart, this rising pattern hinting at a bounce-back scenario has been forming for the past 10 years.
Presently, the ascending parallel channel pattern has created a strong support zone at the $0.16 mark. As seen in the past, whenever the pattern forms a strong support, DOGE usually undergoes a significant rally toward a new all-time high.
Considering past trends, Martinez forecasts a rebound toward the mid or upper range if Dogecoin maintains its positive above the $0.16 support at the channel’s lower boundary. A surge to the mid or upper range of the channel will bring the meme coin’s price between $4.5 and $14 at the end of the current bull market cycle.
Downside Movement For DOGE More Likely Than An Upside Push
Even though DOGE has often skyrocketed once the channels find strong support, it is possible that its failure to maintain above the support zone might expose it to further downside risks in the short term.
Trader Tardigrade, a crypto analyst and investor has outlined a potential downside move in the upcoming days after examining DOGE’s price action on the daily chart. According to the expert, the Dogecoin daily chart displays a bearish Tweezer candlestick pattern, with a false breakout at the resistance level of $0.176.
This technical setup shows that Dogecoin is more likely to move downward to retest the previous support level of $0.143, thereby creating a sideways range between $0.143 and $0.176. Meanwhile, DOGE’s stabilization within the sideways range may set the stage for an upward breakout to key resistance levels. However, DOGE must gain momentum with higher lows slightly below $0.176 in order to break past the level.
At the time of writing, the meme coin has risen to the $0.175 mark, displaying a more than 2% increase in the last 24 hours. Data from CoinMarketCap reveals that investors’ sentiment has turned significantly bullish, with its trading volume increasing by over 56% in the past day.
Featured image from Pexels, chart from Tradingview.com
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