Dogecoin Analysts Eye Further Upside As 200% DOGE Rally Signals End of Macro Downtrend, But There’s A Catch

March 5, 2024

Dogecoin (DOGE), the popular meme-inspired cryptocurrency, has surged by more than 200% since bottoming out in its multi-month downtrend channel, leading analysts to declare the end of the macro bear market for the token. As DOGE continues to outperform the broader crypto market, traders and influencers are growing increasingly bullish on its prospects.

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Dogecoin Breaks Out of Downtrend Channel

Respected crypto analyst Rekt Capital recently highlighted Dogecoin’s impressive performance, noting that the token has rallied more than 200% since hitting the bottom of its downtrend channel several months ago. This breakout, according to Rekt Capital, signals the end of the macro downtrend that had been suppressing DOGE’s price action.

“The Macro Downtrend is over Dogecoin has rallied +200% since the Channel Bottom mentioned all those months ago (green),” Rekt Capital tweeted, accompanied by a chart illustrating the breakout.

The analyst’s observation suggests that Dogecoin may have entered a new phase of its market cycle, with the potential for further upside as bullish sentiment continues to build.

DOGE Closes Above Key Accumulation Zone

Adding to the bullish case for Dogecoin, trader Yomi noted that the token has closed a 2-day candle above a critical secondary accumulation zone on the macro-linear chart. This technical development, according to Yomi, is a significant step towards higher prices for DOGE.

“I apologize for so many updates, but things are changing so quick. #Dogecoin has officially closed a 2 Day candle above are secondary accumulation zone on the Macro Linear chart. This is a huge step towards higher prices,” Yomi shared with his followers.

The trader’s analysis suggests that Dogecoin may have established a strong foundation for future price appreciation, with the recent accumulation zone acting as a springboard for the next leg up.

DOGE Overbought but Uptrend Remains Intact

While the recent price action has been undeniably bullish, technical analysis platform altFINS cautions that Dogecoin may be due for a brief pause or pullback in the near term. The platform notes that DOGE is currently trading in an uptrend across all time horizons (short, medium, and long-term) but is now significantly overbought, with the RSI reaching extreme levels around 90.

“Price is in an Uptrend. After breaking out of a Channel Down pattern, price spike up and reached $0.20 for a 150% gain. However, price is now very overbought (RSI ~ 90!). Hence, near-term, we’re likely to see it pause here on some profit taking. We would patiently wait for a pullback opportunity,” altFINS suggests.

Source: altFINS – Start using it today

Despite the overbought conditions, the platform maintains a bullish outlook on Dogecoin, with the MACD line above the MACD signal line, indicating strong momentum. Key support zones to watch are $0.150 and $0.11, while the nearest resistance zones are $0.200 and $0.225.

As Dogecoin continues to capture the attention of the crypto community, the combination of bullish technical indicators, positive sentiment from influential traders, and the token’s breakout from its macro downtrend channel suggests that DOGE may have further room to run.

However, traders should remain cautious of potential near-term pullbacks, given the overbought conditions, and be prepared to capitalize on any dip-buying opportunities that may arise.

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