Dogecoin targets $0.60 next after DOGE price gains 40% in one week

Key takeaways:

• Dogecoin has broken out of a multimonth symmetrical triangle.

• Trading volumes tripled during the breakout, signaling strong bullish momentum.

Dogecoin (DOGE) price has rallied by nearly 40% in the past seven days, beating the broader crypto market, which has gained nearly 8% in the same period.

The top memecoin now hints at further price growth in the coming weeks, due to a mix of technical and onchain factors.

DOGE price breakout hints at 95% gains ahead

The weekly DOGE price chart shows a breakout from a multimonth symmetrical triangle, a bullish continuation pattern.

As of Saturday, it is trading at around $0.296. But more importantly, its trading volumes during the breakout more than tripled, signifying strong upside momentum.

DOGE price can now rise as high as the triangle’s maximum height, putting its breakout target at around $0.60, up approximately 95% from the current price levels, by October.

Some chartists, including CryptoKing and CryptoGoos, have put their symmetrical triangle targets slightly lower at $0.45. That aligns with the upper trendline of another multiyear and much broader triangle pattern, as shown below.

Dogecoin’s relative strength index (RSI) reinforces the bullish setup after treading below its overbought threshold of 70.

However, DOGE bulls must defend support at its 50-week exponential moving average (50-week EMA; the red wave) near $0.227 to validate the setup. A decisive close below the floor may push Dogecoin lower toward the 200-week EMA at around $0.215.

Can DOGE repeat last November’s 230% gains?

Dogecoin’s MVRV Z-Score sits near 1.35 as of Saturday, a level that in past cycles has often appeared just before major rallies, including last November’s 230% gains.

The MVRV Z-Score measures whether DOGE is overpriced or underpriced compared to what most holders originally paid.

A very high score (particularly above the red area) means the market is overheated because investors are sitting on big unrealized profits. A very low score (below the green area) suggests undervaluation, where most holders are at or below their cost basis.

In 2021, for example, the Z-Score surged above 20 when DOGE hit its $0.70 peak, flashing clear signs of market excess.

Related: Dogecoin price rises despite latest delay of US DOGE ETF launch

Today’s modest 1.35 reading signals the opposite: holders aren’t sitting on extreme gains, leaving plenty of room for price to climb before overbought conditions arise.

This further indicates DOGE still has significant room to grow in the coming weeks.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.