Dogecoin has seen a 35% increase in the last month, much to the delight of its supporters. However, other altcoins such as Solana, Chainlink, and Cardano (ADA) have outperformed Dogecoin, with gains of 170%, 118%, and 55%, respectively, in the same time frame. Despite this, a crypto analyst believes that DOGE’s rally is not over, and recent price action indicates that the crypto is on the brink of a bullish breakout.
According to crypto analyst Rekt Capital, Dogecoin has officially broken out of a descending channel pattern. The analyst affirmed this in a recent post on social media platform X. The chart shows that Dogecoin has been in a downward channel since the last quarter of 2022, with the bears largely controlling the market. However, the dynamics shifted in the middle of October, and a breakout past the channel top became evident.
Related: Investors Alert: Dogecoin Whales Bring $2 Billion into DOGE
At the time of writing, Dogecoin has formed four consecutive bullish candles since rebounding from the channel bottom. Rekt Capital has emphasized that a weekly close over the channel would solidify a shift in trend, which has not occurred in the past year. A breakout over the resistance trendline has now been confirmed after a brief retest.
Related: Dogecoin Continues Its Meteoric Rise in the Crypto World
Rekt Capital’s previous analysis suggests that a strong breakout could see the price rally just over the top of the channel’s highest high at $0.15. Currently trading at $0.07827, a rally to $0.15 would represent a gain of over 90% from its current price and a gain of 163% from its October bottom. Whales have injected more than $2 billion into DOGE in the last 30 days, and social dominance is rising on social media, indicating a bullish sentiment in the short term.
However, despite the positive signs, DOGE is still the 9th largest crypto in terms of market cap, far below its all-time high of $0.65. The future of Dogecoin remains uncertain, but many are optimistic about its potential for a significant rally in the near future.
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