Dogecoin price shows signs of strength on November 19 and could breach the $4 psychological level this cycle according an analyst. The expert speculates that this target of $4 is not “too big” and that DOGE could surpass this level due to one critical reason.
At press time, the DOGE price is trading around $03874, representing a 3.7% increase in the last 24 hours. DOGE registered an intra-day high of $0.3894 and a daily low of $0.3591.
Following the breakout and technical analysis, the meme coin potentially soared to new all-time highs. Can Dogecoin pull this off?
Analyst Forecasts $4 Target For Dogecoin Price
Crypto analyst Zer0 has speculated that Dogecoin could soar above $4. The analyst believes the narrative behind Dogecoin is too big compared to the current market price of DOGE, meaning the meme coin is undervalued.
If you think $4 is too big a target for $DOGE, you’re clearly new here.
It has an entire department named after it now
This shit can go crazy beyond comprehension
— Zer0
(@degengambleh) November 18, 2024
If the Dogecoin price were to soar to $4, the asset’s market cap would swell to $584 billion. Given the popularity of Dogecoin and the establishment of the Department of Government Efficiency (D.O.G.E), the meme coin will likely reach this valuation.
Another analyst, Bluntz, has predicted that while DOGE will rise, it will be a ‘slow grind’. However, the slow rise could transform into a parabolic run after about a week.
This bullish outlook is in line with the recent breakout that led to a triple-digit rally.
Dogecoin Price Rally: What Sparked the Breakout?
After hitting a high of $0.43910, DOGE began consolidating as investors rushed to book profits. The price of DOGE returned to a low of $0.3398, forming a symmetrical triangle that was part of a bullish pennant.
The breakout was caused by a heavy inflow of large investors into the coin, as on-chain metrics show. Santiment analytics shows large holders with 10 million to 100 million coins just hit a 2-year high. The last time there were this many large holders in this category was in February 2022. This category also surpassed the one million to 10 million coin category, indicating that larger whales are taking a position in Dogecoin.
This breakout is a turning point in the Dogecoin price action as it marks the end of the consolidation break and the beginning of the next leg upward.
Dogecoin’s daily trading volume had been dropping during the consolidation period, which is typical of reducing activity as investors await a clear breakout signal to jump back in.
Dogecoin Technical Analysis: DOGE Must Overcome These Key Hurdles
Dogecoin price forecast is a clear uptrend, with a large impulsive wave followed by a consolidation phase in a symmetrical triangle. This suggests a potential continuation of the upward momentum.
Now that the asset has broken above the range, the DOGE price could experience resistance around $0.44 (the local high), $0.55 (the major resistance), and $0.76 (the projected target based on the triangle breakout).
On the flip side, if market conditions change, Dogecoin will likely find support near $0.36 (the local support inside the triangle) and $0.31 (the key swing low support).
Looking at the technical indicators, the recent candles at the edge of the symmetrical triangle show small-bodied bullish candlesticks. This indicates indecision with a bullish bias as buyers step in near the breakout zone.
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