Dogecoin (DOGE) Eyes Parabolic Rally as Analyst Predicts $1 to $3 Target, in a Cup-and-Handle Breakout

• Analyst sees Dogecoin’s breakout above $0.193 as a key level supporting its next bullish cycle toward $1-$3.
• Fibonacci extensions set mid- and long-term DOGE price targets at $1.67 and $4.36, with key support above $0.10.
• DOGE’s RSI momentum and current 50 EMA position point to continued bullish sentiment, despite possible short-term retracement.

Analyst MikybullCrypto has highlighted Dogecoin’s (DOGE) bullish setup, forecasting an imminent rally. According to him, DOGE could replicate its massive 2020 performance, aiming for a target of $1 to $3 in this cycle. This optimistic outlook follows DOGE’s historical breakout above the RSI 70 level, which in 2020 led to a rally exceeding 16,000%. Notably, DOGE’s current price action, patterns, and technical levels support this promising trend.

Classic Cup and Handle Formation Suggests Bullish Continuation

DOGE’s recent price structure reveals a classic cup-and-handle pattern, a formation typically signaling continued upward momentum. The “cup” represents a period of consolidation, followed by a “handle,” where minor retracement occurs before a potential rally.

He suggests that DOGE has broken out of this structure, with the breakout level aligning closely with a resistance line near $0.193. This level serves as a key benchmark for DOGE’s next move, potentially paving the way for further gains if sustained.

Historically, DOGE has respected significant support and resistance zones, especially around $0.10 and $0.193. Following DOGE’s previous bull run that peaked at $0.73 in 2021, these levels have become pivotal support areas, indicating a strong accumulation phase. If DOGE holds above these zones, it may form a foundation for another rally.

Fibonacci Extensions Highlight Long-Term Target Levels

In addition to structural patterns, Fibonacci extension levels are defining potential milestones. The 1.272 extension at $1.67 and the 1.618 extension at $4.36 represent DOGE’s medium- and long-term targets if bullish momentum persists. These levels historically serve as technical and psychological price markers, where buyers and sellers may engage actively. 

With the Relative Strength Index (RSI) gaining momentum, DOGE appears to have room to climb further. The RSI has yet to enter overbought territory, allowing for additional upward movement. However, historical price peaks align with overbought RSI readings, meaning close attention to RSI levels could help gauge potential retracement risks.

Short-Term Technicals Indicate Possible Consolidation

The 50 EMA, currently at approximately $0.276, and the 200 EMA around $0.187 indicate sustained upward movement as DOGE’s price remains above these moving averages. This spread between the two EMAs further confirms a broader uptrend. However, with DOGE’s RSI reading at 77.88, the asset has entered an overbought condition, indicating possible short-term retracement or consolidation before any continuation.

If DOGE sustains levels above $0.35 while trading above its 50 EMA, momentum could extend toward new local highs, potentially reaching the $0.50 mark. On the other hand, any downward pressure may see DOGE testing its 50 EMA for support, with deeper corrections potentially revisiting the 200 EMA around $0.18. Notably, trading volume may influence the duration of this bullish momentum.