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Bitcoinist 2025-02-05 20:30:37

The Calm Before The Storm: Why The Dogecoin Price Is Preparing For Another Explosion Above $0.4

The Calm Before The Storm: Why The Dogecoin Price Is Preparing For Another Explosion Above $0.4

Crypto analyst Crypto Paradise has raised the possibility of the Dogecoin price recording another explosive rally above the psychological $0.4 level . The analyst highlighted a bullish pattern, which proves that the foremost meme coin could witness this parabolic move. Why The Dogecoin Price Could Soon Rally Above $0.4 In a TradingView post , Crypto Paradise predicted that the Dogecoin price could soon rally above $0.4 and explained why this parabolic move was on the horizon. The analyst revealed that DOGE is currently forming a descending channel pattern , and things are starting to look “interesting” for the foremost meme coin. He further remarked that the Dogecoin price had printed a bullish engulfing candle right on the supportive trendline, backed by bullish divergence and a key support zone. Crypto Paradise noted that these are all strong signals that a bullish move could be on the horizon for the foremost meme coin. Crypto Paradise also asserted that the Dogecoin price is likely to bounce from the strong support zone if it​​ witnesses further panic selling or a deeper retracement. However, to confirm this potential move to the upside, the analyst remarked that the market needs to witness a “bullish I-CHoCH,” a W pattern, or an inverse head and shoulders forming on the lower timeframes before considering a bullish move. Meanwhile, on the flip side, the crypto analyst mentioned that this bullish outlook for the Dogecoin price could get invalidated if DOGE closes a candle below the strong support zone. If that plays out, he advised that it is best to step back and wait for a better price action to develop rather than forcing a trade. Two Potential Scenarios For DOGE In an X post, crypto analyst Master Kenobi outlined two potential scenarios for the Dogecoin price and its future trajectory. First, he stated that DOGE could repeat last year’s pattern, with a peak reached by the end of February. For the second scenario, the analyst stated that the foremost meme coin could repeat the August phase, where a pump follows an extended consolidation, with DOGE reaching its peak in April or May. The crypto analyst remarked that he is leaning towards the second scenario. Considering the August phase, he noted that the Dogecoin price recorded a 6x price increase following a violent drop. Measuring a 6x move from DOGE’s current local bottom, Master Kenobi predicts that Dogecoin could rally to as high as $1.25 before its price peaks in mid-April or May. The analyst also raised the possibility of a premature bear market scenario. However, he dismissed this as he opined that it isn’t wise to entertain such a possibility just yet considering that this is 2025. At the time of writing, the Dogecoin price has been trading at around $0.26, which is up over 1% in the last 24 hours, according to data from CoinMarketCap.

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