The Dogecoin price is flashing a pattern formation that could suggest a rally continuation from here. This pattern has appeared multiple times in the meme coin’s chart in the past, and each time, the Dogecoin price has gone on a notable rally. Since there has been a glaring repetition of price recoveries with these kinds of formations, it is likely that this time is no different and that the meme coin could already be seeing the start of another price surge.
Dogecoin Breaks 1D MA50
Crypto analyst TradingShot took to the TradingView website to show the recurrence of an important chart formation for the Dogecoin price that could point to another surge. According to the analyst, the Dogecoin price has been able to close above its 1-Day MA50, which is an important trend line. The reason this is major for the meme coin is what has happened when this has occurred in the past.
In the last year, a break and close above this 1D MA50 level has occurred twice before, and each time the end result was the same: a surge. The first in 2024 happened early in the year, when the Dogecoin price completed the close. This saw a bullish divergence that began in March and marked a bottom. The months following this saw the Dogecoin price more than double, rising from below $0.09 to above $0.16.
The next time this would happen is in September 2024, and the Dogecoin price closed above its 1D MA50. Again, a bullish divergence was created and a bottom was marked. Interestingly, the bullish breakout that followed was even more prominent than the previous one. The meme coin price was able to rise by more than 300%, suggesting that a higher rally could be expected for each subsequent appearance of this bullish formation.
Now, the Dogecoin price has turned bullish again after closing above the 1D MA50. In the same vein, there is already a bullish divergence, and if the previous occurrences are anything to go by, this could mean that the Dogecoin bottom is already in. Following historical performance, a surge could follow from here.
The crypto analyst outlines a possible breakout path, as well as the possibility that this breakout could see the price rise higher than the previous breakout. TradingShot puts the top of this rally at $0.9, which would be a 400% increase and a brand new all-time high for the Dogecoin price.