Dogecoin Breaks 50-Day Trendline Sparking Rally Hopes

Dogecoin, the popular meme coin, is showing signs of a potential significant rally as it has broken above a critical 50-day descending trendline on its daily chart. This development has sparked optimism within the crypto community, suggesting that the meme coin may be concluding its downtrend.

Trader Tardigrade, a crypto market analyst, highlighted this breakout in a post on July 1. The analyst noted that Dogecoin's price has moved above the 50-day trendline, which had previously acted as a strong resistance barrier. This breakout indicates a shift in momentum, potentially signaling the start of a powerful upward price movement.

Dogecoin's microstructure is now showing early signs of a bullish reversal pattern. The meme coin has established a higher low, followed by a higher high after its breakout above the trendline. This structure, characterized by successively higher highs and lows, is often seen as an early confirmation that buyers could be regaining control of the market.

The breakout is particularly significant because it follows an extended period of lower lows and lower highs. With the resistance now breached and early signs of a bullish market structure developing, Trader Tardigrade is increasingly optimistic about Dogecoin’s near-term prospects. If the current trend persists, it could signal the start of a sustained rally for the meme coin.

In a separate analysis, market expert Kaleo suggested that Dogecoin’s current price below $0.20 presents a strong accumulation opportunity. According to Kaleo, the meme coin is significantly undervalued when compared to its potential upside. The analyst projected that the Dogecoin price may be on the verge of a major breakout, with possible upside targets indicating a surge toward $1.5 and possibly beyond $3.50.

Kaleo’s chart analysis highlights strong similarities between Dogecoin’s current market structure, following the April 2024 Bitcoin halving, and the 2020 breakout that preceded the meme coin’s historic bull run. In 2020, Dogecoin traded sideways within a Falling Wedge pattern for months before a breakout triggered a parabolic surge to fresh all-time highs. The current price action exhibits a nearly identical setup, with the meme coin now emerging from a similar multi-year Falling Wedge, potentially setting the stage for another historic bull rally.