During the last crypto bull market, Dogecoin was a clear leader among altcoins and beat Bitcoin by miles in terms of return on investment (ROI).
Could this old dog be up to it’s same tricks? The meme coin is mere pennies away from triggering a “parabolic” signal that the last time around resulted in a 25,000% gain.
Why Dogecoin Could Become A Bull-Dog
Dogecoin has lost a large share of its former value alongside the rest of the crypto industry. This is common during a bear market. But during a bull market, the returns have historically been shocking.
The meme coin became the poster child of the last crypto bull run, famously being mentioned numerous times during Elon Musk’s Saturday Night Live performance.
That event was close to the peak of the previous cycle, and since then has been rolling over and playing dead. Soon, it could bite back. That is according to the Parabolic SAR indicator on the 1M DOGEUSD chart.
DOGE Closes In On Parabolic Buy Trigger
The Parabolic SAR is a technical indicator created by J. Welles Wilder, Jr. who also created such tools as the Relative Strength Index, the Average Directional Index, and Average True Range.
The tool is used to tell a trader or investor that the trend has “stopped and reversed”. If DOGEUSD can tag the Parabolic SAR on the 1M timeframe, it could tell the market that the trend has officially changed.
The reason this is important, is because Dogecoin is typically an indication that altcoin season is approaching. When it begins to take off, so does the rest of the altcoin market. At least it has always historically done so.
A buy signal has only been triggered three times in the past, causing a 500%, 225%, and 25,000% rally, respectively. Will this signal once again prove as reliable as man’s best friend?
This chart originally appeared in “Issue #16: Worst Bear Market Ever” of CoinChartist VIP. Subscribe for free.