The Dogecoin price has been defying broader market weakness by establishing a series of higher lows

The Dogecoin price has been defying broader market weakness by establishing a series of higher lows. Amidst the market downturn, technical indicators suggest that Dogecoin could be setting the stage for an explosive rally, with analysts predicting a 270% surge to a new price high. 

Dogecoin Price Prepares For 270% Surge

A Dogecoin price chart shared by crypto analyst Javon Marks reveals a critical shift in momentum. Following a prolonged downtrend that saw the meme coin’s price crash to significant lows, Dogecoin has now broken out of a descending trendline, signaling the potential end of its bear cycle. 

Dogecoin is setting up quite nicely. As we can see below, Dogecoin has broken out of a long-term descending trendline, which is a common sight during bear markets. This breakout could indicate the beginning of the meme coin’s recovery.

Moreover, Dogecoin has formed a series of higher lows since setting a cycle low earlier this year. This is a sign of increasing buying pressure, which could propel the cryptocurrency higher. After setting its last higher low, Dogecoin is setting up for another leg up.

Chart: Javon Marks / Data via TradingView

Since reaching a cycle low, Dogecoin has consistently posted higher lows — a common sign of growing buying pressure and a steady uptrend. Following the formation of its latest higher low, Marks believes that DOGE is now positioned in a bullish set-up. 

Historically, similar patterns have preceded parabolic moves in the Dogecoin price, suggesting that the meme coin could be gearing up for an uptrend continuation. According to Marks‘ analysis, if Dogecoin follows the established trend, the next impulsive wave could push its price to $0.653, marking an explosive 270% surge. 

While past higher low formations support the likelihood of the analyst’s projected rally, Dogecoin’s recent breakout from the descending trendline further encircles its bullish structure. Marks also suggests that a climb to the $0.63 level could serve as a launchpad for Dogecoin, potentially driving its price even higher to $1.25 if its momentum persists.

Despite the ongoing market volatility, DOGE continues to hold key support levels as it eyes a fresh breakout. Notably, a surge to the $1.25 target would represent an impressive 681.25% increase from the meme coin’s current market value of $0.16. 

DOGE Faces Make Or Break Level

According to crypto analyst Ali Martinez, the Dogecoin price is currently at a make-or-break point, meaning that its next move could determine whether it sees a significant breakout or a sharp decline. Sharing a price chart highlighting Fibonacci retracements and trend channels, the analyst revealed that Dogecoin is sitting on a key ascending trendline which has acted as support since 2018.

This trend line aligns with the 0.796 Fibonacci retracement level at $0.16, marking it a crucial support zone. If Dogecoin manages to hold above this level, it could trigger a bullish continuation, with the next major Fibonacci extension level at $0.57. Surpassing this price mark could also propel Dogecoin to the 1.272 Fib at $2.77.

On the flip side, if Dogecoin breaks below $0.16, the next major support lies around the 0.618 Fib at $0.06. The analyst’s chart also indicates a possible breakdown to $0.0066 or even as low as $0.0016 if bearish momentum persists.