Dogecoin Eyes a Parabolic Surge, Analyst Sees Path to $18 if Uptrend Holds Strong

• DOGE’s current bullish trend could test resistance levels between $0.80 and $1.40, with potential highs at $11 and $18.
• Overbought RSI of 91.89 suggests possible short-term corrections for DOGE, with support around the 50 EMA at $0.23.
• DOGE’s channel shows strong upward potential, but a pullback to $0.23–$0.30 could support a sustainable bullish trend.

Analyst Ali suggests that Dogecoin (DOGE) could reach new price heights, potentially between $2.40 and $18, depending on its performance within an upward channel that has guided its long-term trend since 2014. 

DOGE’s current trading position shows a bullish momentum as it approaches the upper boundary of this channel. Historically, DOGE’s price has oscillated within two parallel lines, support at the lower boundary and resistance at the upper boundary, creating a consistent channel that shapes its price action over time.

DOGE’s Price Movement and Potential Resistance Zones

DOGE’s price trend has been marked by significant peaks, most notably in 2018 and the dramatic bull run of 2021, where it touched the channel’s upper boundary. These peaks were often followed by corrections toward the lower channel boundary, suggesting cyclical behavior within the channel. 

Currently, DOGE is rallying toward the middle-to-upper sections of the channel, which may bring it to potential resistance levels between $0.80 and $1.40. Above this range, resistance could extend up to $4, aligning with historical peaks.

DOGE’s position in the channel provides insight into future price targets. If the bullish trend continues, the upper boundary points toward long-term targets as high as $11, with the possibility of reaching $18 if momentum remains robust. However, DOGE would need to sustain its bullish momentum to attain these targets.

Indicators Signal Short-Term Overbought Conditions

The 50-day Exponential Moving Average (EMA) sits at $0.23445, well below DOGE’s current price of $0.40176, indicating strong bullish sentiment. However, the Relative Strength Index (RSI) reads at 91.89, suggesting that DOGE is in overbought territory. While buyers remain active, this high RSI level often precedes short-term corrections, potentially leading to consolidation or a retracement.

Support Levels and Potential Correction Ranges

If DOGE’s momentum slows, a correction may see it return to support levels around the 50 EMA at $0.23, a recent consolidation area that could attract buying interest. The gap between the 50 and 200 EMAs highlights DOGE’s strong upward trend, but a pullback to the $0.23 to $0.30 range would offer a healthier, more sustained uptrend. Alternatively, a break past $0.50 would signal continued bullish interest, although traders should monitor DOGE’s RSI and EMA levels closely for signs of trend changes.