- Dogecoin’s breakout could signal a significant price surge, with $0.36 as the key resistance
- Analysts predict a bullish outlook, with Dogecoin possibly hitting $1.50 by Q1 2025
Dogecoin [DOGE] recently broke out of a symmetrical triangle pattern, signaling the potential for a bullish move. With growing interest from both retail investors and thanks to sustained media attention, analysts are now setting their sights on $0.36 as the next key resistance level for the memecoin.
In fact, this technical breakout could set the stage for a significant price surge, adding fuel to the ongoing excitement surrounding Dogecoin’s prospects.
Triangle breakout could propel Dogecoin higher
A symmetrical triangle, often indicative of a consolidation phase, has given way to a breakout for Dogecoin. This pattern, characterized by converging trendlines, suggests a potential continuation in the direction of the breakout – In this case, upwards.
According to market analyst Ali Martinez, DOGE has pierced the triangle’s upper boundary at $0.338 – Eyeing a price target of $0.36.
Source: X
Key support remains at $0.325, while traders are closely watching $0.36 as a critical resistance level. With volume gradually picking up, this technical development could attract renewed buying interest, reinforcing bullish sentiment.
However, caution is warranted as DOGE must hold above its breakout level to sustain upward momentum.
What could be causing Dogecoin’s surge?
In January, Dogecoin’s price recorded a significant price hike, one influenced by several key developments. The inauguration of President Donald Trump on 20 January brought optimism to the crypto market, as his administration signaled support for digital assets. Notably, President Trump’s official memecoin TRUMP launched to great gains. He has even formed a group to study a digital coin reserve and regulatory framework, actions that confirmed his commitment to the sector.
Additionally, the anticipation of favorable regulatory changes under the new administration have contributed to positive market sentiment. The likely appointment of Paul Atkins, a pro-crypto businessman, to lead the Securities and Exchange Commission (SEC), is seen as a move that could foster a more crypto-friendly regulatory environment.
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Looking ahead
As Dogecoin’s price continues to fluctuate, analysts have differing views on its future trajectory. Some recent forecasts, based on machine learning models, have predicted a 10.62% decline by the end of January, potentially bringing Dogecoin down to around $0.28. However, the memecoin has defied those expectations and is currently trading at $0.32, surpassing the anticipated drop.
On the other hand, there are more bullish projections. Analysts have drawn comparisons between Dogecoin’s current consolidation phase and its early 2024 accumulation period, which preceded a notable rally. If history repeats itself, it is predicted that Dogecoin could surge to $1.50 by the end of Q1 2025!
