Dogecoin Set for Massive Rally if DOGE Breaks and Holds Above $0.20, Says Analyst

• Dogecoin’s current price action mirrors previous breakout cycles, suggesting a potential upward trend if $0.18 resistance is surpassed.
• RSI and MACD indicators indicate DOGE momentum is strong; a break above $0.18 could test new levels, backed by solid volume support.
• DOGE’s 28.7M volume reflects high interest; sustained trading above $0.20 may set a new bullish phase, aligning with past cycles.

Analyst Ali suggests Dogecoin ($DOGE) might experience a parabolic surge if it sustains levels above $0.20 in the coming months. Tracking DOGE’s historical price action, Ali highlights its periodic surges after prolonged consolidation. Notably, DOGE’s current trading patterns resemble previous cycles that led to massive rallies.

Historical Price Cycles Indicate Possible Trend Reversal

Between 2014 and 2017, Dogecoin traded below a descending trendline, marking a 38-month phase of price consolidation. This period, totaling approximately 1,155 days, was followed by a breakout in 2017, where DOGE rose 8,933% to a peak of $0.01857.

A similar consolidation phase occurred from 2018 to early 2021, spanning 36 months or 1,096 days, before DOGE surged by 15,524.74%, reaching a record high of $0.73432. The 2022-2024 period appears to follow a similar pattern, with DOGE recently breaking above its descending trendline, gaining 48.81% to reach $0.17008. Currently, the cryptocurrency is holding above a support level near $0.075, which could prove crucial for further upward momentum.

Current Price Levels and Technical Indicators Signal Potential Gains

At Press time, DOGE was trading at $0.1703, up by 1.43% in the past 24 hours, exhibiting strong momentum. Support is evident around $0.14 to $0.15, while resistance appears near $0.18. If DOGE surpasses $0.18 with volume, it may enter a new rally phase. The RSI, a popular momentum indicator, is currently at 72.65, suggesting overbought conditions. 

Though high RSI values often lead to pullbacks, prolonged overbought conditions can also signal continued interest during an uptrend. The MACD indicator shows further positive momentum, as the MACD line surpasses the Signal line, supported by an increasing histogram.

Volume and Momentum Back Recent Breakout Activity

Daily trading volume is at 28.7M, supporting the strength of DOGE’s recent price action. Historically, volume spikes on uptrends have been linked to rally sustainment, adding weight to the current bullish sentiment. 

With DOGE nearing $0.18 resistance, monitoring volume changes is crucial, as higher levels could validate the price breakout. While a break above $0.18 may allow DOGE to test higher levels, including $0.20, a retreat towards $0.14-$0.15 support could follow if resistance persists.