Dogecoin Eyes $0.60 After 40% Price Surge in One Week

Key takeaways:

• Dogecoin has surged out of a symmetrical triangle pattern that lasted several months, indicating a bullish trend continuation.

• Trading volumes tripled during the breakout, confirming strong buying interest and momentum.

Dogecoin (DOGE) has experienced an impressive 40% price rally over the past week, significantly outperforming the broader cryptocurrency market which gained nearly 8% in the same timeframe.

This notable surge positions DOGE for further upside potential in the upcoming weeks, supported by both technical indicators and on-chain data analysis.

Technical Breakout Suggests Up To 95% Potential Gains

The weekly price chart for DOGE reveals a breakout from a long-standing symmetrical triangle—a classic bullish continuation formation.

At the time of analysis, DOGE trades near $0.296. Importantly, the trading volume accompanying this breakout more than tripled, signaling robust buyer enthusiasm and validating the upward move.

Price targets from this breakout indicate DOGE could climb as high as $0.60 by October, marking a substantial 95% gain from current levels.

Some market experts, including prominent analysts on social platforms, project slightly more conservative targets around $0.45, which aligns with trends from a broader, multiyear triangle pattern.

Momentum Supported by Relative Strength Index (RSI)

Dogecoin’s RSI currently sits below the overbought threshold of 70, reinforcing the bullish scenario. This suggests room remains for the price to ascend before entering overbought conditions.

To maintain this positive trend, bulls need to defend the critical support level near the 50-week exponential moving average (EMA) around $0.227. A break below could lead to a correction toward the 200-week EMA at approximately $0.215.

Potential to Repeat Last Year’s Strong Rally

The MVRV Z-Score for DOGE, a metric indicating whether the asset is over or undervalued relative to holder costs, currently hovers around 1.35.

Historically, such levels have preceded significant rallies, including a massive 230% price surge last November.

Unlike the high extreme readings seen during the 2021 peak, today’s moderate score indicates holders are not sitting on excessive unrealized gains, allowing more growth potential before signs of overheating.

All these factors combined point to a favorable outlook for Dogecoin with promising potential gains in the near term.

Please note: This content is intended for informational purposes and does not constitute investment advice. Always perform thorough research and consider risks before making trading decisions.