Dogecoin Breaks 3-Year Channel, Eyes 500% Rally Potential

• Dogecoin price has what it takes to hit a $1 high by 2025.
• Elon Musk’s influence and Donald Trump links might fuel DOGE’s hype.

The price of Dogecoin (DOGE) rose over 75% in October to $0.172, marking the highest recorded level since May. Dogecoin is currently exhibiting a technical pattern that could propel its price to surge 500% to $1 by 2025.

What Dogecoin 3-Year Channel Breakout Means

Dogecoin’s ability to reach $1 is based on its recent breakout from a giant symmetrical triangle pattern that has remained active since April 2021. Symmetrical triangles in technical analysis are continuation patterns that typically resolve in the direction of the previous trend. 

Trading the symmetrical triangle chart pattern indicates a time of market consolidation and indecision before a large price movement. Dogecoin price exhibited a symmetrical triangle breakout between 2020 and 2021. During this period, DOGE broke above the pattern’s upper trendline in October 2020 and then rallied by a stunning 31,375%.

DOGE’s October price chart shows that the memecoin is approaching a similar breakout point. Applying the technical rule, DOGE’s price has the potential to hit $1 by 2025, with $2 as its upward target in the next few years. 

Dogecoin’s weekly Relative Strength Index (RSI) is another key indicator supporting the bullish outlook. In July, the RSI bounced from a historical support zone of about 46. In the past, sustained rallies have resulted from RSI support bounces that follow consolidation patterns such as symmetrical triangles. Therefore, if the current breakout holds, it adds weight to the $1-$2 target, representing a 500-1,000% increase from current price levels.

On the flip side, DOGE is more likely to stay within the range if it breaks below the upper trendline of its huge triangle. This will start with a decline toward the $0.09-0.07 range, coinciding with its 50-week EMA and the triangle’s lower trendline.

Elon Musk and Donald Trump’s Influence on DOGE’s Price

As of this writing, DOGE is trading at $0.1701, up 24.57% in the past week.

The memecoin’s recent gains can be linked to Elon Musk’s appearance at Donald Trump’s New York campaign rally on October 27. Musk discussed his plans to save $2 trillion in taxpayers’ money through his brainchild agency, Department of Government Efficiency. Intriguingly, this agency has the same initials as the Dogecoin ticker, DOGE.

The newfound relationship between Musk and Trump could amplify Dogecoin’s bullish hype. Additionally, Trump’s win in the 2024 election might further strengthen Dogecoin’s appeal among retail investors. 

Musk has confirmed he will collaborate with the Trump administration on efficiency projects and the common “D.O.G.E.” abbreviation. As CNF reported, Trump said he would offer Musk a role in his cabinet or advisory team if he were re-elected President. This news has stoked speculation and reinforced Dogecoin’s meme appeal among traders and investors.

According to Polymarket, Trump has a 64.1% chance of winning the 2024 election, higher than Vice President Kamala Harris’s 35.9% odds.

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