Dogecoin (DOGE) Could Be Poised for a 500% Price Pump

Dogecoin (CRYPTO: DOGE) fans celebrated DogeDay on April 20 — a yearly event that began in 2021 with the playful online holiday on April 20, also known as 4/20.

But now, there could be another big reason for Dogecoin fans to celebrate as a well-known crypto analyst says a 500% rally in Dogecoin may be in the works.

What Happened: At the moment, Dogecoin is trading at around $0.16. The price has been in a range-bound motion, moving between $0.14 and $0.16 since late March. This sideways movement is often associated with an accumulation phase, where investors are focused on entering or adding to their positions.

Dogecoin is now approaching a crucial support zone. It’s also nearing a breakout above the 20-day Exponential Moving Average (EMA), which is located at around $0.1606. A break above this level could clear the way for a move toward $0.20. That price level was last hit in early March and again later that month.

Chart: Benzinga Pro

Relative Strength Index (RSI) is a tool used by traders to gauge the magnitude of price movements. When the RSI is above its moving average, it indicates that more traders are leaning bullish. However, an RSI reading above 50 indicates that buyers have an edge over sellers, while readings below 50 suggest that sellers are in control.

While the RSI is showing signs of improvement and is now above its moving average, it is still below the 50 level. This suggests that while buyers are becoming stronger, the market has not yet transitioned into a strong bullish trend.

Despite the positive developments, the broader trend is still slightly bearish. Dogecoin has yet to make a decisive move above the 20-day EMA, and trading volume has not shown a significant increase.

While the mood is improving, it’s not exactly brimming with excitement yet. But that might soon change.

What One Analyst Is Saying: Crypto expert Steph, known online as @Steph_iscrypto, spotted an interesting pattern when examining past charts of Dogecoin. Before Dogecoin experienced a 500% surge earlier this year, it underwent a 129-day downward trend.

During that period, DOGE rose from $0.08 to over $0.40. Now, Steph believes the same scenario might be unfolding again. He described it as a “bottom signal,” which is a term used in technical analysis to denote a point where a downtrend is likely to reverse.

This type of recurring setup is something traders keep an eye on as it could indicate that the current price zone might serve as a launching pad for a substantial rally.

“They say history repeats itself, and in the crypto markets, that statement couldn’t be truer. After a 129-day decline, #Dogecoin finally appears to be setting up for a strong move to the upside.”

This time, the crypto behemoth had been moving sideways. But now, with signs of a bottom forming and a possible breakout from the 20-day EMA in sight, the stage seems set for a final push toward $0.20, setting the scene for a 500% rally from the lows hit earlier this year.

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Why It Matters: Financial institutions are applying to launch exchange-traded funds that would track the price of DOGE. These ETFs would provide an easy way for people to invest in DOGE through normal stock markets.

Among the companies that have applied to the U.S. Securities and Exchange Commission are Bitwise, Grayscale, 21Shares and Rex Shares.

If approved, these ETFs could bring in a lot of new money to invest in DOGE, which many experts believe could help to quickly increase the price of the cryptocurrency.

Last month, an expert at Glassnode said that the approval of a Bitcoin ETF by the SEC could push up the price of the world’s largest cryptocurrency.

“We’ve seen Bitcoin struggle to break above the $50,000 level despite a flurry of positive developments in the crypto space recently.”

“However, I believe that the approval of a spot Bitcoin ETF by the SEC could be the catalyst that pushes Bitcoin above $50,000 and sets the stage for a continuation of the bull market.”

What Now: At present, the price of Dogecoin is relatively calm, but beneath the surface, things are heating up.

With the price stabilizing, charts showing early signs of a move, big investors watching and history potentially repeating itself, if everything aligns, Dogecoin could be in line for one of its biggest runs yet.