Dogecoin's Monthly Close Above $0.20 Could Spark 280% Rally

An analyst has shared insights on how a Dogecoin monthly close above a certain level could potentially lead the memecoin to retest its all-time high (ATH).

According to the analyst, Dogecoin has been trading within an Ascending Channel, a type of Parallel Channel. This pattern forms when an asset’s price consolidates between two parallel trendlines, with the upper line providing resistance and the lower line offering support. A breakout from either of these levels can indicate a continuation of the trend in that direction.

In the context of Dogecoin, the Ascending Channel represents a phase of net upward consolidation in the price. The upper line connects higher highs, while the lower line connects higher lows. The 1-month price of Dogecoin has been stuck inside this channel for several years, and recently, it has fallen to the lower level of this long-term Ascending Channel, appearing to slip under it.

If Dogecoin can recover above the lower level of the channel, its path may once again follow the pattern charted out by the Ascending Channel. Additionally, the memecoin is close to breaking above the 0.786 Fibonacci Retracement level, situated around the $0.20 price level. The next major level, the 1.000 Retracement, corresponds to DOGE’s ATH of around $0.74.

According to the analyst, if Dogecoin can secure a monthly close above $0.20, it could pave the way for a rally toward its all-time high of $0.74. Such a breakout would signal strong bullish momentum and potentially attract increased investor interest.

At the time of writing, Dogecoin is trading around $0.17, up over 9% in the last week. The price of the memecoin seems to have been moving sideways recently.