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Dogecoin, the largest dog coin by market cap, may be preparing for a major move, crypto analyst Ali noted in a recent post. Ali highlighted the likelihood of this move being to the upside as several indicators align. A move to the upside in this scenario has the potential to reach $0.177 if a major resistance level where 30 billion DOGE were previously transacted is surmounted.
In a five-point post, Ali highlighted key reasons why he believes Dogecoin may be setting up for a parabolic move.
According to Ali, a well-known indicator, the Tom DeMark Sequential flashed a buy signal on Dogecoin's monthly chart last month, pointing to a potential trend reversal.
Ali indicated that Dogecoin's current setup closely resembles that of August 2022, when the coin formed an inverted hammer alongside a TD buy signal, which was followed by a doji candle. This setup was followed by a 145% monthly rally.
DOGE is now showing a similar pattern: an inverted hammer, a TD buy signal, and a developing doji candle. If history repeats, the next monthly candle could spark a significant move.
While the current technical setup remains positive, whales appear to be positioning for upside. Over the past week, large holders have accumulated more than 430 million DOGE, adding conviction to the bullish technical setup.
$0.177 highlighted as potential target
Dogecoin has traded sideways between $0.068 and $0.08 since June 25. Dogecoin trades at $0.069, with a death cross recently appearing on its hourly chart.
If Dogecoin sees a trend reversal as indicated above, the key resistance to watch for the dog coin sits around $0.0813, according to Ali, where more than 30 billion DOGE were previously transacted.
Dogecoin saw a sharp rejection from this key level on June 23 and has since turned into a key level to watch for Dogecoin's next move.
A sustained close above $0.0813 could signal further upside, with the next URPD resistance at $0.177, Ali noted.
If DOGE manages to reclaim $0.0813 and convert this level to support, it might break out of its current range and attention could shift toward the next major resistance level.
U.Today Editorial Team
Dan Burgin
