Dogecoin’s Chart Hints at a Major Rally, $1 ATH Soon?

Dogecoin (DOGE) shows a bullish falling wedge pattern on the 2-day chart, suggesting a potential breakout. The price is consolidating near strong support, indicating accumulating energy. Increased interest from potential ETFs adds further momentum, potentially leading to a significant rally.

On April 20th, analysts observed a falling wedge pattern forming on the 2-day chart. Historically, these patterns often precede breakouts and substantial price increases. One analyst even predicted a dramatic 500% surge, mirroring DOGE's performance during the last bull market. While this is a bold prediction, several factors support this possibility.

Key Levels and the Potential Breakout

Currently trading at $0.172, DOGE rests on significant horizontal support, consolidating between $0.14 and $0.17 since late March. This consolidation, while appearing sideways, suggests accumulation to seasoned traders. The 20-day Exponential Moving Average, around $0.16067, provides further support. The price has repeatedly tested this level, hinting at a potential bounce.

The $0.20 mark represents a key psychological resistance level. Breaking above this could dramatically shift market sentiment. The Relative Strength Index (RSI) also shows positive signs, recently crossing above its moving average, indicating increasing momentum. Although still below the neutral 50 mark, this slow climb suggests building bullish pressure. While volume remains low and a breakout hasn't occurred yet, the setup suggests a potential for a significant move.

Institutional Interest and Growing Attention

Beyond the technical analysis, several ETF applications for DOGE are under SEC review. Major players like Grayscale, Bitwise, and 21Shares are involved, indicating serious institutional interest. Approval of even one ETF could trigger significant institutional investment, further fueling a potential rally. Dogecoin is transitioning from a meme coin to an asset attracting considerable attention from institutional investors.

The combination of a tightening falling wedge and mounting institutional pressure makes a breakout seem increasingly likely. If this happens, the price increase could be substantial. Currently, DOGE is contained within a tightening wedge, suggesting a potential for a significant price movement. The combination of institutional interest and ETF speculation could amplify this move. A historical repeat could result in a dramatic price surge.

Tags: Altcoin, Crypto market, Cryptocurrency, Dogecoin (DOGE)