The Dogecoin price looks set to witness a breakout above the psychological $1 level, having broken a resistance trendline

Crypto analyst Trader Tardigrade provided a timeline for when the Dogecoin price could see a breakout above the psychological $1 level, having already broken a resistance trendline.

Also, Trader Tardigrade predicted that the Dogecoin price could rally above $1 following a break above the resistance trendline. In an X post, he revealed that DOGE has broken out of a mid-term resistance trendline while adding that there is no sign of a false break.

Trader Tardigrade stated that this price movement is very similar to those in February 2024, when there was a massive surge after a period of momentum buildup.

If the Dogecoin price performs a similar buildup, then a massive surge could happen in May 2025, with the meme coin surpassing the $1 mark. His accompanying chart showed that DOGE rallied from around $0.09 to as high as $0.18 the last time it witnessed a similar momentum buildup.

Trader Tardigrade Provides Optimistic Outlook For Dogecoin

In another X post, Trader Tardigrade provided an optimistic outlook for the Dogecoin price. The analyst stated that DOGE’s Wyckoff accumulation hasn’t missed.

Trader Tardigrade noted that in phase C, a test followed the Spring, a signature move in Wyckoff Accumulation. Meanwhile, phase D featured several low points of support (LSPs), SOS (signs of strength), and BU (back-ups).

He added that once Dogecoin consolidates around the $0.18 range for a while, it will enter phase E to complete the pattern and launch a massive rally for the meme coin. The Dogecoin price is expected to reach $0.26 in phase E before it rallies to new highs.

Dogecoin Price Surpasses $0.40 Following Interest Rate Cuts Last Year

It is worth mentioning that the Dogecoin price surged to its current local high of $0.45 after the Fed cut interest rates last year.

The meme coin is expected to continue rallying further if there are more rate cuts this year. According to the Federal Open Market Committee (FOMC) meeting minutes, several officials prefer to keep interest rates stable in May.

However, they anticipate that the Fed will begin cutting rates by June and July as inflation falls. This aligns with the predictions of Economists polled by Reuters, who believe that the Fed will commence cutting interest rates in the third quarter of 2024.

Dogecoin Price Surging Despite Macro Challenges

Optimistically, the Trueflation indicator shows that there is lower inflation than what the Consumer Price Index (CPI) indicates. This might lead to quantitative tightening policies ending sooner than expected, which is bullish for crypto.

The Dogecoin price has already performed "exceptionally" well in this cycle, considering the macro circumstances of high interest rates, decreasing money supply, high inflation, and quantitative tightening, crypto analyst Kevin Capital stated.

Based on this, he expects DOGE to perform even better when monetary easing policies begin to come into place.

According to Kevin Capital, the Dogecoin price could rally to at least $3 when there is an increasing money supply and decreasing interest rates.