Dogecoin, a popular cryptocurrency, has been experiencing a significant price crash, dropping by over 67% from its peak in November. However, a top crypto trader, known as Cobbers, has suggested that the coin may be on the verge of a rally. He pointed to a rare chart pattern known as a falling wedge, which often leads to substantial gains. This pattern consists of two converging trendlines, with DOGE’s upper line connecting higher lows since December and the lower line linking lower lows since November. When these lines converge, a bullish breakout typically occurs, potentially leading to a surge in the Dogecoin price to $0.2350.
Additionally, Dogecoin has formed a double-bottom pattern on the eight-hour chart. This pattern, characterized by two down peaks and a neckline, often signals a rebound and more gains ahead. The lower side of the double bottom was at $0.1435, while the neckline is at $0.2070. This pattern suggests that a bottom may have been reached and that short sellers are reluctant to trade below that level. Furthermore, oscillators like the Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) are pointing upwards, supporting a bullish view for Dogecoin’s price trajectory.
In terms of potential drivers for a surge in Dogecoin’s price, there are several catalysts on the horizon. For instance, 21Shares has applied for a spot DOGE ETF, following in the footsteps of firms like Bitwise and Grayscale. The likelihood of approval for this ETF is high, as Dogecoin is a proof-of-work cryptocurrency that the SEC does not deem a security. Additionally, Dogecoin could benefit from a resurgence in Bitcoin’s price, with some analysts predicting a rise to $200k. Historically, there has been a correlation between BTC and DOGE prices. Moreover, if the Federal Reserve lowers interest rates due to the ongoing trade war, Dogecoin price could experience a significant surge.
Overall, despite the recent price crash, there are indications that Dogecoin may be primed for a rally in the near future. With the formation of rare chart patterns like the falling wedge and double-bottom, along with potential catalysts such as a DOGE ETF approval and a Bitcoin price recovery, there is optimism in the crypto community about a potential surge in Dogecoin’s price. Investors and traders alike will be keeping a close eye on these developments to see if Cobbers’ prediction of DOGE being “set free” comes to fruition.
