Dogecoin (DOGE) Price Eyeing A Parabolic Rally to $3?

Dogecoin price displayed a strong upside momentum on Wednesday, gaining 5.38% after pivoting from a crucial support level and setting sights on further rally to $3, technical analysis by crypto analyst Ali Martinez revealed.

Additionally, the DOGE network has been expanding rapidly with new addresses doubling over the past month, showcasing the ecosystem’s resilience for a big upside.

Dogecoin Price Critical Positioning In Key Price Channel

According to crypto analyst, Ali Martinez, Dogecoin is poised at a critical juncture within a key price channel, currently holding at a significant support level that could decide its next move.

“If this support holds, we might see a rebound toward the mid or upper boundary of the channel,” Martinez noted, suggesting the possibility of a bullish recovery to $3 and beyond.

Also, based on the stock RSI, the Dogecoin price could go parabolic moving ahead. During two previous instances in October 2023 and February 2024, when the stock RSI underwent a bullish crossover, leading to a rapid surge in DOGE price by 88% and 187% respectively. On the weekly chart, the stock RSI is again presenting a bullish crossover, signaling a potential for a substantial rally ahead.

Dogecoin Network Expanding

Analyst Marinez further highlighted the expansion of the Dogecoin network over the past month. The total number of new DOGE addresses has nearly doubled, surging from 16,400 to 34,600. This increase showcases the expanding interest and adoption of the Dogecoin network, highlighting its continued prominence in the cryptocurrency market.

Dogecoin Price Set For A Breakout

Crypto trader Tardigrade highlighted a recurring pattern in Dogecoin price action on the 4-hour chart, which could be indicating a potential bullish trend.

According to the trader, DOGE typically hits a higher low as the Relative Strength Index (RSI) enters the oversold zone. This is then followed by a second, lower low with the RSI remaining in a similar oversold reading.

If this historical pattern holds, then Dogecoin could be on the verge of a significant breakout to the upside from a crucial resistance level.

As of Thursday, 13th April, the Dogecoin price is trading 5.7% up at $0.172 levels with the DOGE futures open interest surging more than 4% to $1.40 billion. and 24-hour liquidations past $7.24 million.