Dogecoin (DOGE) Could Be Prepped for a Significant Breakout, Targeting 2X Surge

Dogecoin (DOGE) price is currently in a consolidation phase and could be preparing for a strong move in the upward direction, according to an analysis shared on X.

The post claims that Dogecoin Is Set To Break Long-Term Trend With A 2X Surge.

Dogecoin could be preparing for a significant breakout, according to a recent chart shared by Rose Premium Signals. The analysis shared on X indicates that the leading memecoin is currently in a consolidation phase and could be preparing for a strong move in the upward direction. This means the price is stabilizing before it starts a new rally.

The chart reveals that DOGE has broken out of a long-term trend on the 7-day timeframe, indicating the formation of a bullish setup. Its price has been trading sideways around the $0.22 range. Usually, this type of movement suggests that if the market builds strength, a bigger move could happen soon.

The Rose Premium Signals analysis has identified three key levels $0.41678, $0.51532 and $0.63028 as the coin’s next possible targets when it starts the next rally. Should this forecast come to a reality, Dogecoin would have more than double its current price.

The signal stated that this price prediction is based on the Fibonacci extension levels, which is common among traders for predicting future price zones. During the last year, Dogecoin has yet to reach the high prices it saw in 2021.

Even so, the way this currency has been accumulated and its price trends recently indicate an important upward move ahead. As shown in the chart, a breakout above the descending trendline confirms this bullish forecast.

Based on the analysis, DOGE’s behavior around the $0.23 price level over the next few weeks will be important. A weak move and declining move would lead to more sideways action while the opposite would confirm the breakout prediction.

Positive Funding Rates Suggest Bullish Bias For DOGE

The latest Coinglass data for Dogecoin’s funding rate shows that funding has remained in the positive region in the last week. Even though the funding rate has been modest as shown by lower and less frequent peaks as the week progressed, it suggests a slight bullish bias.

With both the price and funding of DOGE stable, it is likely in a period of consolidation.