Dogecoin (DOGE)the largest meme-based cryptocurrency by market cap recently hit a second low, suggesting the meme coin is gearing up for a potential 4,000% surge rally to new record highs above $4.
Dogecoin Second Low Could Promise Big Gains
Trader Tardigrade, a crypto analyst, told its 55,100 followers on X (formerly Twitter) that Dogecoin has officially hit a second low after reaching a crucial support levelHe shared a price chart that illustrated Dogecoin Price Movements since 2014, focusing on periods where the meme coin made a first and second low after reaching a key support level, subsequently leading to a massive price surge.
From 2014 to 2017, Dogecoin found support in 2015, followed by a second low in 2017, which caused a substantial price rally that same year. A similar pattern played out between 2018 and 2021, with Dogecoin reaching a critical support level in 2020, forming a second low in 2021, and then rising dramatically in value that year.
Following this historical trend, Trader Tardigrade wonders if Dogecoin will follow a similar price pattern or if it will be different this time. The cryptocurrency has already reached a major support level in 2023 and recently made its second low, indicating that it may be preparing for a dramatic price increase.
Looking at the price chart, the analyst points to an increase, suggesting that DOGE could potentially see a staggering 4,000% price surge above $4 during this bull cycle.
When a member of the crypto community asked if this bullish price breakout could take place on November 6, after the end of the American presidential election and a possible Donald Trump victory, Trader Tardigrade simply responded, “Not a bad bet.”
The analyst has remained very optimistic about Future Outlook for Dogecoinwhich suggests in an earlier X-message that Dogecoin may have finally bottomed out in the current market declinewith indications that a major bullish crossover is on the horizon.
Bullish Divergence Points to Potential Upside
Popular crypto analyst Ali Martinez has identified a unique technical pattern in the Dogecoin price chart. Martinez announced that Dogecoin is currently showing a bullish divergence against the Relative Strength Index (RSI) on the 4-hours chart.
A bullish divergence occurs when the price of a cryptocurrency is making new lows while the RSI is making higher lows. This discrepancy is seen as a sign that the market is gaining strength, characterized by decreasing selling pressure that can lead to a potential price reversal.
Martinez also revealed that Dogecoin’s TD indicator give a buy signalwhich suggests that current conditions may be favorable for a possible upward price movementt. At the time of writing, Dogecoin’s price is trading at $0.096, down 2.53% over the past 24 hours, according to CoinMarketCap.
Main image created with Dall.E, chart from Tradingview.com