Dogecoin Hits 1-Year Low Against Bitcoin, Potential 140% Surge Ahead

Dogecoin (DOGE) has recently hit its lowest point against Bitcoin in over a year, but some analysts are interpreting this as a potential turning point. The popular technical indicator, Bollinger Bands, suggests that the DOGE/BTC pair is at the bottom of its monthly range, which historically indicates an impending trend change as the market shifts its focus beyond Bitcoin.

Currently, Dogecoin is trading at approximately 0.00000086 BTC, positioning it near the lower band of the monthly Bollinger Bands. The midline of these bands is at 0.00000226 BTC, while the upper band extends to 0.00000367 BTC. If the price follows historical patterns and rises to the upper band, it could result in a surge of over 140%. This scenario mirrors conditions from late 2022, when DOGE experienced a similar recovery.

The current chart pattern resembles the market behavior from the second half of 2022, characterized by prolonged declines followed by tightening ranges and eventual spikes. During that period, DOGE rallied nearly 180% over four months. This pattern is not driven by news or hype but by the market's behavior during extended periods of inactivity. Bollinger Bands are designed to identify such overbought/oversold situations, and current indicators suggest that DOGE may be in such a state.

To confirm a reversal, traders are looking for a clean close above the lower band, ideally followed by a recovery toward key zones like 0.0000015 BTC. If this occurs in July, it could signal that DOGE's downtrend is weakening. More significantly, it might indicate that some altcoins are poised to outperform Bitcoin as the market moves into the third quarter.