Analyst Says Doge Breaking Out Again After Cool-Off with Projected 120% Rally

Dogecoin is breaking out after a brief cool-off, with analysts predicting a 120% rally toward $1 as it forms a bullish pattern.

Over the past few days, Dogecoin has struggled to regain its footing after briefly touching $0.4359 a week ago. The meme coin king has oscillated mostly within a tight range between $0.3500 and $0.3800, showing weak price action after its speculative bull run lost steam.

However, Dogecoin showed promising signs of a comeback today, following a 10% green candle that pushed it back into the $0.4000 range. For context, since November 14, when Dogecoin dropped below the $0.40 mark, it had not regained that threshold until today. At press time, DOGE is trading at $0.3950 after a brief pullback.

Dogecoin Ready for a 120% Surge

Amid this recent bullish signal, market watcher Ali Martinez has suggested that the meme coin could continue today’s rally and surge further by 120%. Martinez pointed out that Dogecoin is breaking out of a bull flag pattern, suggesting a potential 120% rally to $0.82, provided the $0.37 support level holds.

The four-hour chart shared by the analyst shows that Dogecoin underwent a seven-day price consolidation since reaching the multi-year high of $0.4359. Now, it appears to be breaking out of this range-bound pattern. Martinez believes the meme coin could hit a new peak at $0.82 based on the recent price action, setting the path for $1.

Other prominent market watchers, like “Professor Astrones,” have expressed similar bullish outlooks about Dogecoin’s breakout from consolidation. “It’s starting,” he tweeted, sharing a two-hour chart showing DOGE reversing the previous ranging trend.

Resistance Levels Dogecoin Must Overcome

However, Dogecoin has significant resistance as it works toward a new peak. The immediate hurdle is overcoming the $0.4402 level, which aligns with the Fibonacci 1.0 level at which Dogecoin encountered rejection last week.

Once this level is cleared, Dogecoin will face additional resistance at $0.5500 and $0.6500 before it can challenge its all-time high in the $0.70 range, which nearly coincides with the 1.618 Fibonacci level.

While the path ahead presents challenges for Dogecoin, it’s worth mentioning that DOGE cleared previous resistance at the $0.2200 and $0.3000 levels in under 48 hours during its explosive price run between November 10 and 12, when it rose from $0.2173 to $0.4359.

Higher Outlooks for DOGE

Meanwhile, the crypto community eagerly anticipates an eventual Dogecoin rally to the $1 mark, much like they await Bitcoin’s rise to $100K. Analysts have projected potential cycle peaks for Dogecoin as high as $18 and even $23, should it follow a similar performance to the last cycle. However, these targets remain highly speculative.