Dogecoin is still yet to recoup its price decline from last week, which saw it breaking below $0.3. Nonetheless, a key technical signal has emerged on DOGE’s price chart that could send the meme coin on a bullish path for the rest of the year.
According to crypto analyst KrissPax, who highlighted this key technical signal on social media platform X, the Dogecoin Price Momentum Oscillator (PMO) suggests that the meme coin could be on the verge of another major price surge.
Dogecoin Price Momentum Crossover
Technical analysis of the Dogecoin price shows that the Price Momentum Oscillator (PMO), a tool used to measure trend shifts and momentum strength, has just recorded a crossover on the 2-week candlestick timeframe. A PMO crossover occurs when the PMO line crosses above or below its signal line, which is typically a moving average of the PMO.
When the PMO line crosses above the signal line, it suggests that momentum is shifting in favor of buyers. This phenomenon is particularly significant, as it has happened only twice in Dogecoin’s history, in 2017 and 2021. Interestingly, each crossover has led to an interesting price action.
Looking at past instances, Dogecoin’s PMO crossovers have preceded some of its most explosive rallies. The first of such PMO crossovers was in 2017 when the market was about to enter its first significant bull market. After the 2017 crossover, DOGE’s price surged by over 6,000% till it reached a peak of $0.0175. Similarly, the second crossover occurred just before Dogecoin’s historic rally in the 2021 bull market. Back then, the meme coin went on a 36,400% run to reach its current all-time high of $0.73 after the bullish crossover.
DOGE’s Next Move: Analyst Targets $4 Price Level
With history as a reference, KrissPax predicted that Dogecoin’s latest PMO crossover could lead to another significant breakout. Interestingly, the recent PMO crossover had already pushed Dogecoin to multi-year highs, but recent corrections have stalled the bullish momentum.
However, many crypto analysts agree that the Dogecoin rally is set to resume anytime from now. As such, Krisspax predicted that the four-year cycle of bullish PMO crossovers is still in play, and we could be looking at a big move up for DOGE. In terms of a price target, the analyst has set a price target of $4.
Achieving the $4 price target would represent an increase of about 4,110% from its 2024 low, which was recorded immediately before the current market cycle began.
At the time of writing, Dogecoin is trading at $0.2619, up 0.18% in the past 24 hours. Reaching the $4 price target would also represent a 1,427% increase from the current price point. However, the first step in achieving this $4 price target would be to break and hold above the $0.3 price level again. Successive short-term price resistance levels to note are $0.4 and finally $0.5.
Featured image from Pexels, chart from Tradingview.com
