- Dogecoin (DOGE) is entering a parabolic phase, targeting a price of $2, supported by historical patterns and key technical indicators.
- A breakout past the $0.11 resistance level could further propel DOGE toward significant upward movement.
Meme cryptocurrency Dogecoin (DOGE) is on the verge of a significant price breakout, with a potential new all-time high within sight. Recent chart patterns suggest that DOGE has officially begun its parabolic phase, marking a crucial point in its market cycle.
Parabolic Phase Initiation
Crypto analyst Trading Shot highlighted in a TradingView post on September 20 that Dogecoin has completed an extended accumulation phase, characterized by a long period of price consolidation. This phase, a recurring pattern in DOGE’s market cycles, typically precedes a bullish movement.
According to Trading Shot, Dogecoin maintained its price above the 100-week moving average, a critical support line, during the accumulation zone. This price action mirrors previous cycles, leading to a breakout from a “bull flag” pattern and entering the “Parabolic Rally” phase.
Source: TradingView/Trading Shot
Next DOGE Price Target
With the parabolic phase in motion, the next target is set at $2. Historically, Dogecoin’s previous cycle tops in January 2014 and January 2018 were priced just below the 0.786 Fibonacci channel level. The cycle top in April 2021 saw an overextension to the 1.0 Fibonacci level, driven by mainstream adoption and aggressive buying pressure.
While a similar overextension to $6 is possible in this cycle, significant market momentum or new use cases for Dogecoin would be necessary. Without such factors, Trading Shot’s analysis sets a realistic price target at $2, aligning with the 0.786 Fibonacci level, consistent with the first two major cycle tops.
Timing-wise, Dogecoin’s cycle peaks typically follow the 3.0 Fibonacci time extension from the previous bear cycle bottom. Assuming the last bear cycle bottom occurred in early October 2022, the next peak is expected around August 2025, giving DOGE approximately 18 months to reach its next cycle top.
DOGE Short-term Outlook
Another crypto trading expert, Ali Martinez, noted in an X post on September 19 that Dogecoin is also bracing for a possible breakout, citing key technical indicators. The Relative Strength Index (RSI) is nearing a breakout of its long-standing descending trendline on the daily chart. A breakout of this trendline would signal a potential shift in momentum, indicating stronger upward pressure.
The second signal is a break past the $0.11 resistance level. Currently, Dogecoin is consolidating below this threshold. Should the price surge beyond $0.11, it would mark a bullish breakout, potentially pushing DOGE toward the $0.13 to $0.14 range.
Source: TradingView/Ali_charts
Dogecoin Price Analysis
At present, Dogecoin is trading around $0.104. Despite short-term weakness, including a 0.5% drop in the last 24 hours and a weekly decline of over 3%, technical signals suggest that momentum could be building for a significant upward move.
Dogecoin appears poised for potential bullish movement, supported by historical patterns and technical indicators. The outlook remains optimistic as it navigates key resistance levels, particularly if it breaks past the $0.11 threshold. However, general market sentiment will play a crucial role in influencing DOGE’s next price target.
