Dogecoin's Upside Potential: Analysts Predict Breakout Amidst Market Surge

Dogecoin, the popular meme-based cryptocurrency, has been making waves in the market despite recent stagnation. Multiple analyses suggest that the coin has more upside potential in the current cycle, with recent price movements indicating a possible breakout.

Dogecoin closed the week with a 6.5% increase from two weeks ago, marking its first green weekly close in four weeks. This upsurge comes amidst a macroeconomic boost, and the coin is now trading around the 0.618 Fibonacci level. Market analyst Ali Martinez believes that Dogecoin could see more upside from this level.

Martinez is not alone in his bullish outlook for Dogecoin. Other analysts also predict that the leading meme coin will sustain its recent momentum and reach unprecedented prices before the cycle ends. Trader Tardigrade, a prominent market analyst, has identified trends that suggest Dogecoin's top signal has yet to arrive. He pointed to the relative strength index (RSI) indicator in the 2-week timeframe, which has historically indicated the meme coin's top. According to his analysis, Dogecoin is currently consolidating with the first RSI retracement for this cycle, suggesting that the coin could target higher prices when the RSI hits similar levels to other cycles.

KrissPax, a notable Dogecoin enthusiast, also discussed the possibility of an imminent surge for the largest meme coin by market cap. He noted that Dogecoin has broken out from two consecutive descending channels since late 2023, with strong upsurge momentum. KrissPax believes that another breakout is on the horizon, with the bull cycle still in full force. However, on-chain activities in the Dogecoin ecosystem remain flat, with whale traction towards the meme coin dropping 88% since mid-November. For Dogecoin to regain bullish momentum, activities around its ecosystem, especially among large holders, must resume.