Dogecoin’s breakout from 3-year channel signals 500% rally potential in 2025

As a seasoned researcher with a knack for deciphering market trends and a soft spot for memecoins, I find myself intrigued by Dogecoin’s recent surge and its potential to reach unprecedented heights. Having witnessed the 2020-2021 bull market where DOGE skyrocketed by an astounding 64,000% due to Elon Musk’s tweets, I can’t help but feel a sense of deja vu with the latest developments.


In October, the price of Dogecoin (DOGE) skyrocketed by over 75%, climbing up to $0.172 before the end of the month – a peak not seen since May 2024.

The surge in value for the meme coin can largely be attributed to Elon Musk. Notably, at Donald Trump’s campaign rally on October 27th, he talked about his vision to save $2 trillion by streamlining government efficiency through his agency, Department of Government Efficiency (DGE). Interestingly, this agency shares the same initials as Dogecoin’s ticker symbol, DOGE.

The current technical structure of Dogecoin suggests it might be on track to surge significantly, potentially reaching or even exceeding the $1 mark.

DOGE breaks out of a 3-year-long symmetrical triangle

The possibility for Dogecoin to rise to $1 during the ongoing bull market is attributed to its recent escape from a massive symmetrical triangle chart formation, which has been active since April 2021.

Technical analysis often involves recognizing symmetrical triangles, which serve as continuation patterns. These triangular shapes usually indicate a trend will continue in the same direction as before, potentially ascending to a height equal to the greatest distance found between the triangle’s upper and lower trendlines.

During the 2020-2021 span, Dogecoin’s price showed a breakout from a symmetrical triangle formation. This pattern’s upper boundary was breached in October 2020, following which Dogecoin experienced an astounding surge of approximately 31,375%.

As of October 2024, DOGE’s price appears to have been entering a similar breakout stage.

Dogecoin’s breakout from 3-year channel signals 500% rally potential in 2025

Based on the technical analysis, the estimated high for DOGE in the upcoming years could be around $2. It might even hit $1 by the year 2025.

As an analyst, I’ve noticed another strong signal bolstering the optimistic viewpoint: my focus on Dogecoin’s weekly Relative Strength Index (RSI). Remarkably, it rebounded from a historically significant area of support approximately 46 in July.

Historically, RSI (Relative Strength Index) support tends to rebound after periods of consolidation, such as symmetrical triangles, which frequently precede prolonged upward movements. This strengthens the case for a potential $1-$2 price target if the breakout is maintained. Notably, this would represent a significant increase of 500-1,000% from current price levels.

If DOGE falls below the upper trendline of its large triangle, it’s more likely that it will stay within this range, starting with a drop towards the $0.09-$0.07 range. This move could align with the 50-week Exponential Moving Average (the red wave) and the lower trendline of the triangle.

Trump win should boost DOGE price

If Donald Trump were to win the 2024 election and express support for Dogecoin, as he has a strong following similar to those who prefer DOGE, it could intensify the bullish excitement surrounding Dogecoin even more due to his influence on the market.

Dogecoin’s breakout from 3-year channel signals 500% rally potential in 2025

Elon Musk has affirmed his collaboration with the Trump administration on projects aimed at enhancing efficiency. The shared “D.O.G.E.” acronym has fueled curiosity and emphasized Dogecoin‘s meme-inspired allure, similar to his tweets and self-proclaimed role as the “Dogefather,” which played a significant part in the coin’s skyrocketing 64,000% increase during the 2020-2021 market boom.

On the prediction market Polymarket, the probability that Donald Trump will win the 2024 presidential election is presently estimated at 64.1%, which surpasses Vice President Kamala Harris’s odds of approximately 35.9% for winning.

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2024-10-31 11:04