The discovery of a hidden bullish divergence pattern on the Dogecoin price chart has sparked discussions about a potential upward trend for the popular cryptocurrency. This new technical signal suggests a possible rally, with one crypto analyst forecasting a price target of $0.7 for Dogecoin.
Signs of a Bullish Divergence Indicate Dogecoin Price Rise
On November 20, the crypto analyst known as Trader Tardigrade took to X (formerly known as Twitter) to highlight the emergence of a hidden bullish divergence on the 4-hour Relative Strength Index (RSI) chart for Dogecoin. This technical analysis implies that Dogecoin might be on the verge of a notable upward movement.
An RSI hidden bullish divergence typically occurs when a cryptocurrency’s price forms higher lows, while its RSI shows lower lows. This pattern suggests that although Dogecoin’s RSI indicates weakening momentum, the price retains strength, hinting at a potential continuation of an uptrend.
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Dogecoin has recently witnessed a substantial bullish trend, with its price surging from over $0.1 to surpass $0.35 in a mere few weeks. This impressive ascent has enabled Dogecoin to challenge the $0.4 resistance level, a significant barrier that, if overcome, could lead to a further price surge.
Trader Tardigrade’s analysis reveals that the RSI Hidden Bullish Divergence is emerging near the $0.37 price level. The analyst’s bullish forecast suggests a target of $0.7 for Dogecoin, emphasizing the potential for steady growth if the cryptocurrency maintains its positive momentum.
At the time of writing, Dogecoin is trading at approximately $0.38, marking a remarkable 165.19% increase over the past month, as reported by CoinMarketCap. Although Dogecoin has struggled to consistently break the $0.4 mark, a successful continuation of the Hidden Bullish Divergence could lead to an 84.2% price increase, potentially nearing or surpassing its all-time high (ATH) of $0.73, achieved in May 2021 during a previous bull market.
Dogecoin Aiming for New All-Time Highs
In another analysis shared on X, crypto analyst Steph remains optimistic about Dogecoin’s price trajectory. Steph predicts that Dogecoin could reach a new ATH in the current bull cycle.
The analyst provided a two-year price chart for Dogecoin, identifying a bullish target ranging from $1.4 to $1.8. According to Steph, this ATH rally could unfold by the end of 2024 or into 2025, based on their analysis of the chart.
Current market dynamics indicate that the substantial surge to a new ATH could be fueled by influential factors such as Elon Musk’s involvement through his proposed organization, the Department of Government Efficiency (D.O.G.E). Additionally, Donald Trump’s upcoming inauguration as the 47th President of the United States could serve as a significant catalyst for Dogecoin’s price escalation.
Although Dogecoin’s price experiences some bearish pressure, as seen on the DOGEUSDT chart on Tradingview.com, the potential for growth remains strong.
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