Dogecoin Bulls Eye $1 as MACD Cross Mirrors Past 300% Rallies

Key Insights:

• Dogecoin's MACD indicator has just repeated a pattern that previously led to gains of up to 340%.
• Despite an 11% price drop, DOGE is showing signs of recovery near the $0.23 support level.
• Analysts predict an upside to $0.50–$1 if the bullishness continues and support levels hold.

Dogecoin (DOGE) is once again the center of attention as it now flashes a familiar technical signal. This signal previously sparked rallies of over 300% in the past, and if history repeats, Dogecoin could be on the verge of a similar move towards $1.

The indicator in question is the MACD, and it has just printed a bullish cross on DOGE’s weekly chart this July.

Bullish Patterns And Dogecoin’s Incoming Rally

The MACD bullish cross happens when the MACD line crosses above the signal line. Historically, this indicator is used to identify trends, and tends to come before sharp changes upwards.

DOGE’s previous rallies came before nearly identical MACD crosses and tended to happen with very little warning.

According to analyst Mikybull Crypto, history could be on the verge of repeating itself.

Beyond the MACD signal, DOGE has formed a classic double-bottom pattern after its prolonged downtrend. This formation is often considered a bullish reversal pattern, and indicates that the price could climb toward the $0.48–$0.50 range in the near future.

Analyst CipherX also pointed to the fair gap value (FGV) around $0.20–$0.22 as a major support zone. This level was previously formed during a rapid price movement upward and now serves as a very important support for Dogecoin.

In essence, as long as the cryptocurrency holds this zone, momentum is expected to shift and push the price higher.

In his analysis, the most important liquidity target sits around $0.48–$0.50, which would be nearly double the current value.

But Then Came the Sell-Off

Despite the optimism, DOGE faced a strong sell off on July 24. The memecoin plunged 11% from $0.26 to $0.24 during a harsh trading session. Trading volumes soared past 2.26 billion tokens as institutional players started to take profits.

This drop came after DOGE repeatedly failed to break above the $0.25 resistance level. So far, all attempts to recover were met with rejection and the price has briefly dipped to $0.23 before stabilizing.

Technical indicators currently show signs of exhaustion as Hourly RSI levels entered oversold territory and analysts flagged $0.23 as the new critical support.

In essence, if DOGE fails to hold this level, the next downside target could be around $0.21.

Market Sentiment Remains Divided

This recent volatility has created a divide between the bulls and bears on Dogecoin, in terms of sentiment.

On one hand, technical signals and historical patterns show that a rally is possible.

On the other hand, institutional exits, lack of tangible utility, and the market-wide uncertainty have been major issues.

The question now is “can Dogecoin hit $1?”

Technically, it’s possible. From its current price of about $0.24, a move to $1 would require a 316% gain. This stands as a heavy climb, but one that Dogecoin has made before. For example in the 2021 bull run, DOGE soared from less than a penny to $0.73 in a matter of months.

This time, however, Dogecoin’s path to $1 may be tougher.

That said, traders continue to monitor the 200-day Exponential Moving Average (EMA), which sits around $0.20628. If DOGE remains above this level, the bullish narrative effectively stays intact.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.