Dogecoin (DOGE) Price Analysis: Upside Momentum Building, Will Past Surges Repeat This Cycle?

Dogecoin has lost crucial support levels leading to a price correction. Even though DOGE has seen bearish movements in the past few days

Dogecoin has seen crucial support levels slip away amid a price correction. But despite the bearish moves in the past few days due to a general crypto market downswing, the dog-themed meme coin could be shifting toward a bullish territory in the short term.

Highlighting an encouraging trend in Dogecoin’s recent price action, market expert and investor Trader Tardigrade pointed out that DOGE is showing signs of a potential trend reversal toward renewed bullish momentum.

After a period of downswing, key technical indicators are suggesting that the meme coin will gain traction soon. Specifically, the expert points to a bullish divergence on the DOGE’s 1-day Relative Strength Index (RSI), suggesting that upside momentum is building.

A bullish divergence usually occurs when prices move lower, but indicators are showing bullish signals or moving upward. In this case, Trader Tardigrade noted that DOGE forms a new lower low, while the RSI remains at a higher low. The development indicates that the momentum may be transitioning from a downward trend to an upward trend.

With buying interest surging and technical indicators displaying bullish signals, Dogecoin’s path toward a positive move seems likely in the short term. Should these trends continue to build, DOGE might overcome significant resistance levels, paving the way for a strong price rebound.

Moreover, in a monthly time frame analysis by crypto expert Daniel Ramsey, the meme coin showcases robust performances for an impending major rally. Several positive developments have been identified on the monthly chart.

According to Ramsey, the meme coin has formed a massive Cup and Handle formation on the monthly time frame. A Cup and Handle formation is a technical pattern that has historically sparked upside strength, pushing a digital asset to uncharted territories in a bull cycle.

Ramsey expects a breakout from the pattern to spur a move above the key zone between $0.22 and $0.3. Ramsey also underlined three big white soldier bullish candlesticks pattern further supporting Dogecoin’s upside potential.

With a breakout from the cup and handle pattern combined with these candlesticks, the analyst believes that DOGE could soar to a new all-time high of $1.1 in the upcoming months. The worst-case scenario is that DOGE might retest the key zone prior to the anticipated massive rally.

Several recent developments are likely to bolster Dogecoin’s rally this cycle to unprecedented heights as seen in past cycles.

During the last cycle, Dogecoin saw tremendous growth of over 80X, leading to a market top and an all-time high. According to DOGECAPITAL, DOGE was able to experience this massive upsurge with heightened retail interest and without institutional interest or activity.

Meanwhile, DOGE is seeing heightened institutional and global interest such as the potential introduction of Spot Dogecoin Exchange-Traded Funds (ETFs). As a result, the expert foresees a huge growth, targeting between $9 and $35 price levels this cycle.