Dogecoin is seeing a comeback, now close to its all-time high price, set in 2021. Thanks to the bull run ignited by Donald Trump’s election victory.
Crypto analyst The Coach XD on X has sparked discussions about the potential for DOGE’s price to reach a price target of $4.20, which he called inevitable. He used trendlines on the weekly price chart of DOGE against the US Dollar (USD) as observed on Binance.
DOGE Price Analysis
The analyst followed some past trends to correlate the present trendlines on the chart, stating that the lower trendlines act as a long-term support level, indicating that despite fluctuations, the DOGE price has established a solid foundation from which to rebound.
The upper trendlines represent resistance levels that have formed an ascending channel or wedge over the years, suggesting that upward movement is possible if the price breaks through this barrier.
The red trendlines indicate down-trending resistance zones that have historically marked bearish phases. Notably, these zones have been broken in the past, leading to significant bullish movements. This pattern suggests that the DOGE price has the potential to repeat this behavior.
Analyst Predicts $4.20 Target Using Past Bullish Patterns and Consolidation
The analysis points out several instances where DOGE’s price has consolidated within wedge or triangle patterns before experiencing significant breakouts. Notable examples from late 2020 and early 2023 demonstrate how such patterns can precede explosive price movements.
The $4.20 mark emerges as a potential target based on the extended channel’s resistance. This price level not only carries psychological significance but also aligns with historical price behavior, making it a focal point for traders.
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As long as the DOGE price remains above the lower trendline and within the ascending channel, the long-term outlook remains bullish. This setup is crucial for maintaining investor confidence and attracting new buyers.
The analysis presented indicates that while the $4.20 target may seem ambitious, the underlying indicators suggest a long-term bullish potential for Dogecoin. Given the historical price patterns and current market dynamics.
