“It seems a historical breakout is about to occur,” one analyst stated.
Last week, the OG meme coin briefly tumbled under a key level, prompting analysts to warn that the bears might tighten their grip.
However, the bulls managed to claw back part of the losses, and now DOGE is once again the subject of a wave of optimistic price predictions – some of which sound quite unrealistic (considering the current condition of the market).
The Rare Signals
Dogecoin has been hovering around $0.07 over the past week, currently trading slightly above $0.071, which, according to the analytics platform Santiment, is vital for its bullish path ahead.
At one point last week, the renowned analyst Ali Martinez revealed that the meme coin’s TD Sequential indicator has flashed multiple consecutive buy signals, describing the development as “a rare setup that could be warning a major bull rally is approaching.”
Earlier today (July 27), he infused even more optimism. Martinez claimed that DOGE “is screaming bullish” after the TD Sequential has printed buy signals on the monthly, weekly, 3-day, and daily charts.
“It’s rare to see this kind of alignment across so many timeframes at once,” he added.
MikybullCrypto also presented certain bullish factors in favor of Dogecoin. First, they claimed that the meme coin is sitting on a historical level that could deliver a major 10x rally. Shortly after, the analyst reiterated their thesis, saying:
“It seems a historical breakout is about to occur. The squeeze has become so tightened.”
The Vital Condition
Over the weekend, some of the well-known meme coins posted substantial gains, with X user Daan Crypto Trades noting the development and saying, “it’s always good to watch the biggest one.” The analyst suggested that DOGE could show a real sign of strength if it retaces the $0.08 zone.
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Alternatively, they opined that dropping to the high timeframe support range between $0.055 and $0.061 is “generally good for long term/bear market accumulation.” Joshuwa Roomsburg paid special attention to the $0.08 as well, stating:
“That level could turn a bounce into strength holders can trust. Memes move on attention. They hold on follow-through.”
Meanwhile, certain technical indicators support a potential bullish scenario. DOGE’s Relative Strength Index (RSI), for instance, has dropped to nearly 30 on a weekly scale, the lowest point since the summer of 2022.
The technical analysis tool runs from 0 to 100, and readings around and below 30 usually indicate that the asset has entered oversold territory and could be due for a resurgence. On the other hand, ratios above 70 are interpreted as warnings for an impending pullback.
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