Dogecoin (DOGE) Second Low Could Signal Big Gains Ahead

Trader Tardigrade, a crypto analyst, told his 55,100 followers on X (formerly Twitter) that Dogecoin has officially formed a second low

Dogecoin (CRYPTO: DOGE) is gearing up for a potential 4,000% rally to new all-time highs above $4, a technical analysis suggests.

Here's how Dogecoin's second low could signal big gains ahead.

What Happened: Dogecoin, the largest meme-based cryptocurrency by market capitalization, has recently formed a second low, suggesting that the meme coin could be preparing for a potential massive rally.

Trader Tardigrade, a crypto analyst, shared his analysis with his 55,100 followers on X (formerly Twitter) on Monday.

Dogecoin touched a crucial support level earlier this year, and now a second lower low has been established, Tardigrade noted.

The analyst shared a price chart illustrating Dogecoin's price movements since 2014, highlighting periods where the meme coin had formed a first and second low after hitting a key support level, which then led to a massive price surge.

From 2014 and 2017, Dogecoin found support in 2015, followed by a second low in 2017, which triggered a substantial price rally later that same year.

A similar pattern played out between 2018 and 2021, with Dogecoin reaching a critical support level in 2020, forming a second low in 2021, and then skyrocketing in value later that year.

Following this historical trend, Trader Tardigrade questions whether Dogecoin might follow a similar price pattern or if this time will be different.

The cryptocurrency has already hit a key support level in 2023, and recently established its second low, hinting that it may be preparing for a dramatic price increase.

Reviewing the price chart, the analyst points to a rally to the upside, suggesting that DOGE could potentially witness a staggering 4,000% price surge above $4 during this bull cycle.

When asked by a crypto community member if this bullish price breakout might occur on November 6, after the end of the United States Presidential elections and a potential Donald Trump win, Trader Tardigrade responded simply with, “Not a bad guess.”

The analyst has remained highly optimistic about Dogecoin’s future outlook, suggesting in a previous X post that Dogecoin may finally have reached its bottom in the current market downtrend, with indications of a major bullish crossover on the horizon.

See Also: Best Cryptocurrency Scanners

Bullish Divergence Points To Potential Upside: Meanwhile, popular crypto analyst Ali Martinez has identified a unique technical pattern in the Dogecoin price chart.

Martinez disclosed that Dogecoin is currently showing a bullish divergence against the Relative Strength Index (RSI) on the 4-hour chart.

A bullish divergence occurs when the price of a cryptocurrency is making new lows while its RSI is hitting higher lows.

This discrepancy is seen as a sign that the market is gaining strength, characterized by weakening selling pressure that could lead to a potential price reversal.

The analyst also revealed that Dogecoin’s TD indicator was flashing a buy signal, suggesting that current conditions may be favorable for a possible upward price movement.

At the time of writing, the price of Dogecoin is trading at $0.096, reflecting a 2.53% decrease in the last 24 hours, according to CoinMarketCap.