Dogecoin Poised for Explosive Rally as Analysts Spot Bullish Squeeze
Despite a recent crypto market downturn, including a dip for Dogecoin, analysts are pointing to a potential 'squeeze' pattern that could propel the meme coin into its next major bull run. This technical setup suggests significant upward momentum may be on the horizon, defying current market sentiment.
Dogecoin's Bullish Technicals Hint at Imminent Breakout
Crypto analyst Unichartz has identified a Dogecoin "squeeze" that signals an impending upward move for the asset. His analysis, detailed in a TradingView post, highlights Dogecoin's promising structure within a rising wedge formation. The meme coin's price has consistently held above a crucial rising support line, which it has respected multiple times, indicating strong bullish intent from buyers. This technical setup suggests a potential rally towards the psychological $0.30 level. Should DOGE reach this milestone, it would mark its first visit to this price point since its multi-year high of approximately $0.48 in 2024, and establish a new 2025 high, surpassing its current $0.28.
Key Resistance Levels and Broader Market Influence
Unichartz also pointed out that a descending resistance line and a key horizontal supply zone around $0.28 are currently acting as significant barriers. For a decisive breakout and higher price movement, Dogecoin must clearly flip this confluence zone. Meanwhile, Dogecoin's recent performance has seen it drop from a high of $0.24, with an over 8% decline in the last seven days. This downturn is largely attributed to a massive drop in Bitcoin's price, which has been in a downtrend since reaching a new all-time high of $124,000 two weeks prior.
Stoch RSI Signals and Macro Drivers
Adding to the technical perspective, crypto analyst Kevin Capital emphasized that the next critical goal for Dogecoin's Stochastic Relative Strength Index (Stoch RSI) is to cross the 20 level and demonstrate a follow-through. A reading below this level typically indicates weak momentum, and the Stoch RSI is currently positioned at 13, showing an upward trajectory. Capital suggests that Dogecoin's most significant cycle move is probable if Bitcoin continues its upward trend and Ethereum enters a price discovery phase, coupled with a decreasing Bitcoin dominance. He concludes that DOGE requires a bit more time for both Bitcoin and the broader macro environment to align and support this anticipated surge. As of the time of writing, Dogecoin is trading around $0.21, experiencing a minor decline of nearly 2% over the past 24 hours.
