Is Dogecoin poised for a 50+% rally over the next few days?

Lavina Daryanani
Source: PYMNTS.com

Since mid-March, Dogecoin has been faring well on the price front. If its movements are carefully observed, it can be noted that this token carried out a parabolic recovery in March. From a high of $0.1390 registered on the 1st of this month, DOGE locally bottomed out at $0.1099 on the 13th. Leaving aside a few hiccups, the #12th ranked coin has steadily been able to make higher highs and re-visit pre-set benchmark levels of late.

At this point, DOGE has completely negated the losses registered in this month and was seen trading at a level last noted during mid-February. Post a 25% weekly incline, Dogecoin was priced at approximately $0.15 at the time of press.

Source: Tradingview

Dogecoin en-route a 64% rally?

On the weekly chart, Dogecoin’s prospects looked even brighter. Since May last year, DOGE has been registering lower highs and lower lows. Joining them using trendlines on the chart typically gave rise to a falling wedge.

Right before the lines could converge, Dogecoin’s price broke above the upper trendline. In fact, throughout last week Dogecoin exchanged hands above the same, confirming the bullish breakout. In fact, this week’s newly formed candle too was in green at the time of press.

Source: TradingView

From the first swing high to the first swing low, the crypto asset’s price noted a 63.74% decline. Thus, per the technical thesis, Dogecoin’s price signed up for a hike of a similar magnitude post-breaking out.

From the said point, a 63.74% ascent would see DOGE knock the doors off $0.19379700. Dogecoin has already rallied by 27.47% till now and can be expected to achieve the aforesaid price target in the days to come.

The community’s rising interest with respect to Dogecoin further advocated the bullish narrative. As can be seen from Santiment’s chart attached, the social volume metric has spiked quite a few times over the last day on the 30-minute window.

In the past, whenever the number of Dogecoin-related mentions on social media has risen, the price has positively benefitted from the same. Thus, with the social interest peaking, the environment looks pretty favorable to support DOGE’s rally.

Source: Santiment

On the flip side, the bullish narrative would get fractured if Dogecoin’s price falls below last week’s lows of $0.117. In such a scenario, the asset would find solace only in the region in around $0.09.