Why Dogecoin’s next minimum target is $3.5, according to analyst
Why Dogecoin’s next minimum target is $3.5, according to analyst 
Cryptocurrency Nov 8, 2024 Share
Dogecoin (DOGE) is maintaining an upward momentum, capitalizing on the impact of the Donald Trump victory with an analyst projecting a parabolic rally for the meme coin.
In this case, the token’s parabolic growth channel hints at the asset hitting a minimum target of $3.5, according to crypto trading expert Trading Shot in a TradingView post on November 8.
The pattern, which captures historical performances, indicates that Dogecoin has consistently rallied within this channel, with only one break to the upside, which led to a peak during the April 2021 bull market.
Picks for you
Experts predict Bitcoin price to hit $100k before Trump's inauguration 18 hours ago Why Silver price is surging 21 hours ago Cronos Labs strengthens partnership with Google Cloud to improve its ecosystem 22 hours ago Tourism Authority of Thailand and Freedom World bring Web3 tech to travel 22 hours ago 
DOGE price analysis chart. Source: TradingView/TradingShot
At the same time, the token is showing a key technical indicator, the one-week golden cross, which is on the horizon. This pattern is traditionally bullish, where the one-week moving average (MA50) crosses above the one-week MA200.
The last time this occurred was in late December 2020, sparking a parabolic rally that drove DOGE to new highs.
Supporting this outlook, the one-week Relative Strength Index (RSI) triggered a bullish cross on October 7, echoing signals from past cycles that preceded significant price rallies.
To this end, TradingShot’s analysis projects that DOGE’s rally could reach the 1.618 Fibonacci extension level, consistent with previous peak patterns.
With these indicators aligning, the analyst noted that Dogecoin may be in the early stages of its next parabolic rally, with an anticipated target of $3.5 as a high for this bull cycle.
“We believe that Doge has started its Parabolic Rally, the final and most aggressive part of the Bull Cycle, and based on the previous 1.618 Fib peaks, we are expecting at least a $3.500 high,” the analyst said.
More upside projection for DOGE
On the other hand, Jake Wujastyk, in an X post on November 8, noted that DOGE has broken above a long-term descending trendline, which had served as a consistent resistance level since early 2022.
DOGE price analysis chart. Source: TradingView
This breakthrough above the trendline hints at a possible start of a new bullish run for Dogecoin. Based on past performances, when the token breaks such a long-term resistance, it often marks the end of a downtrend, opening the room for upward momentum.
As reported by Finbold, another analyst, Ali Martinez, pointed out that technical indicators suggest the meme coin might surge to $4.
In addition, Dogecoin has also found a boost from its perennial backers. In this case, Tesla (NASDAQ: TSLA) CEO Elon Musk has been instrumental in the token’s recent rally.
Dogecoin gained momentum after it emerged that Musk might find a potential role in the new administration, perhaps as head of the rumored “Department of Government Efficiency.”
This rally has seen Dogecoin breach new highs, with the token’s gains translating into new millionaire holders, who surged by 40%.
Dogecoin price analysis
By press time, DOGE was trading at $0.19, rallying 3% in the last 24 hours. The leading meme cryptocurrency has surged by over 20% on the weekly chart.
DOGE seven-day price chart. Source: CoinMarketCap
At the current price, Dogecoin’s technical setup offers mixed signals. The price is above the 50-day and 200-day simple moving averages, signaling a possible continuation of the rally.
Meanwhile, the 14-day RSI is overbought territory, implying that DOGE will likely see a pullback or consolidation soon.
If the general crypto market sustains the cu rent momentum, DOGE should maintain the gains.
Featured image via Shutterstock
