Dogecoin Surges 40% in One Week Amid Bullish Technical Breakout
Dogecoin (DOGE) has rallied nearly 40% over the past seven days, significantly outperforming the broader cryptocurrency market, which gained around 8% during the same period. This surge follows a breakout from a multimonth symmetrical triangle pattern, a widely recognized bullish continuation signal.
Technical Breakout and Volume Surge Indicate Strong Momentum
On the weekly chart, DOGE breached the upper boundary of the symmetrical triangle while trading volumes more than tripled, reinforcing the strength of the upward move. As of Saturday, DOGE was trading near $0.296.
The technical target derived from the triangle’s maximum height projects a potential price rise to approximately $0.60, representing gains of about 95% from current levels by October. Some analysts, including CryptoKing and CryptoGoos, suggest a more conservative target near $0.45, aligning with the upper trendline of a broader multiyear triangle pattern.
Key Support Levels and RSI Signal
Dogecoin’s relative strength index (RSI) remains below the overbought threshold of 70, supporting continued bullish momentum. However, maintaining support at the 50-week exponential moving average (EMA) near $0.227 is critical. A decisive close below this level could trigger a decline toward the 200-week EMA at approximately $0.215.
On-Chain Metrics Suggest Room for Further Gains
The MVRV Z-Score, which compares DOGE’s market value to holders’ cost basis, currently stands near 1.35. Historically, this level has preceded major rallies, including last November’s 230% price increase. Unlike the extreme overbought conditions seen in 2021, today’s moderate reading indicates that holders are not realizing significant profits, leaving room for further price appreciation.
While these technical and on-chain indicators point to potential upside, market participants should remain cautious. The cryptocurrency market remains volatile, and key support levels must hold to sustain the bullish outlook.
Disclaimer: This article does not constitute investment advice. Cryptocurrency trading carries inherent risks, and readers should perform their own due diligence before making financial decisions.
FinOracleAI — Market View
Dogecoin’s breakout from a long-term symmetrical triangle, combined with a tripling in trading volume, signals strong near-term bullish momentum. The projected price target near $0.60 implies significant upside potential, supported by neutral on-chain metrics that suggest holders are not yet overextended. However, the market must hold critical moving average support levels to confirm this trajectory. Investors should monitor volume trends and support retention closely, as a failure to hold these could lead to a correction.
Impact: positive
