Dogecoin Shows Bullish Signs With 700% Rally Potential

Dogecoin, a cryptocurrency known for its meme-inspired origins, has recently exhibited signs of a potential rally, as indicated by technical indicators. The Moving Average Convergence Divergence (MACD) signal, a widely used momentum indicator, suggests that a new upward trend may be on the horizon. This bullish signal comes as Dogecoin has been trading within a specific range, failing to sustain rallies above certain price points.

Historically, Dogecoin has experienced strong volatility cycles, with potential for explosive upside moves. The MACD crossovers in 2024 and 2025 highlight these cycles, suggesting that another significant rally could be brewing. Every multi-year consolidation phase for Dogecoin has triggered massive rallies, with 2025 aligning for another potential breakout. The recent price drop below $0.040 and the MACD downturn signal a key moment, but cyclical trends hint at a bullish shift ahead.

Trader Tardigrade’s analysis highlights Dogecoin’s critical MACD crossover, signaling a possible breakout toward $1. According to the trader, Dogecoin’s price behavior since early 2024 reflects a series of bullish and bearish MACD signals. Initially, Dogecoin rallied from $0.080 to $0.220 after a bullish crossover in March, marking the coin’s first rally phase in 2024. However, the price later corrected, falling back to $0.060 during the summer. Despite the dip, another MACD crossover surfaced during consolidation, hinting at renewed bullish strength.

Dogecoin then staged a dramatic comeback. During late 2024, the meme coin skyrocketed from $0.060 to highs near $0.480. This 700% rally was Dogecoin’s most aggressive move in recent history. The MACD histogram printed its highest bullish levels within the period, with both MACD lines widening, further confirming the intense upward momentum. However, this rally phase was short-lived. In early 2025, Dogecoin plunged below $0.040, triggering a bearish MACD crossover. The histogram turned red, with both MACD lines crossing under the zero line, suggesting a strong bearish trend now dominates Dogecoin’s outlook.

Historically, every consolidation phase for Dogecoin has led to massive rallies. The first Doge Season occurred in 2017, with prices soaring nearly 9,000%. The second season exploded in 2021, driving Dogecoin to its all-time high of $0.740. After that, Dogecoin entered a lengthy sideways range between $0.050 and $0.350 for almost three years. The third Doge Season began in late 2024, with Dogecoin rallying from $0.060 to $0.480. These parabolic moves follow clear patterns, with each rally coming after multi-year accumulation periods. Green curved trendlines connect the consolidation bottoms, forming reliable support zones across multiple timeframes. Moreover, volume spikes during each rally confirm stronger investor participation.

Currently, Dogecoin trades at $0.040 after breaking below a crucial trendline. Hence, the next support rests near $0.030. However, another MACD crossover to the upside could reignite a rally phase. Consequently, many traders are now closely watching for bullish signals. Additionally, cyclical patterns suggest that the next Doge Season could unfold anytime in 2025.

The MACD indicator, which measures the relationship between two moving averages of a security’s price, has crossed above the signal line, indicating a bullish momentum. This technical signal, combined with the Relative Strength Index (RSI) showing strong bullish momentum, suggests that Dogecoin could be poised for a significant price increase. According to the analyst's forecast, if the bulls can maintain this momentum, Dogecoin could potentially reach $0.20, a new monthly high.

However, it is important to note that while technical indicators provide valuable insights, they are not foolproof predictors of future price movements. Market sentiment, regulatory developments, and other external factors can also influence the price of Dogecoin. Investors should exercise caution and conduct thorough research before making any investment decisions.

In summary, the recent MACD signal and strong RSI momentum suggest that Dogecoin may be on the verge of a new rally. While this is encouraging for bullish investors, it is crucial to consider all factors and not rely solely on technical indicators. The potential for Dogecoin to hit $1 remains speculative, and investors should approach this possibility with a balanced perspective.