Dogecoin seems poised for its next significant move, with a familiar price structure emerging on its price chart. According to crypto analyst BasicTradingTV, this meme coin is exhibiting a trend of rounding bottom patterns and parabolic rallies, which have historically driven its price to all-time highs. The current setup suggests that Dogecoin’s ongoing recovery from its March low may signal the start of a much larger parabolic rally rather than just a temporary bounce.
Dogecoin Trading In A Familiar Cycle: 100% Chance Of Rally
At the core of this bullish forecast is the recurrence of a well-known price pattern: the rounding bottom. Dogecoin is known for trading in multi-year cycles that initiate with a gradual bottoming formation, ultimately leading to explosive rallies. This pattern, evident on longer-term charts, has reformed over the past several months.
As illustrated in the monthly candlestick timeframe chart, the rounding bottom played out between Dogecoin’s all-time high in 2021, the subsequent bear market in 2022, and the recovery phase observed in late 2024. This recovery led to Dogecoin achieving new highs since 2021, likely marking the onset of the parabolic rally phase. However, it is crucial to note that this anticipated parabolic rally was temporarily hindered by a strong resistance zone.
After peaking around $0.48 in December 2024, Dogecoin faced rejection that initiated a corrective decline, bringing the price down to $0.1477 by early March. Importantly, this level did not break down but instead acted as solid support. Since then, there has been a slight rebound, with prices recovering to approximately $0.2 at the time of writing. Based on this context, the analyst has suggested that the bullish cycle remains intact, with the parabolic leg of the pattern expected to unfold soon.
Monthly Candle Needs To Close Above Support
Currently, the most critical step for Dogecoin is to close the monthly candlestick for March above the key support level established during the recent market correction. Such a close would offer strong confirmation that a bullish parabolic rally is forthcoming. The analyst also highlighted two crucial levels for Dogecoin in the upcoming weeks and months: $0.15 and $0.50. The $0.15 level was tested during Dogecoin’s sharp pullback earlier this month, where the price dipped to a low of $0.1477.
As it stands, $0.15 is serving as the support level that should not be breached. The longer Dogecoin tests this support level, the longer the parabolic rally may be delayed. However, the recovery from this zone has added technical strength to the notion that buyers are likely to step in at this level.
Conversely, $0.50 is identified as the primary resistance target moving forward. Successfully breaking through this resistance will confirm the commencement of a full-fledged parabolic rally, akin to the trajectory that propelled Dogecoin to its all-time high in 2021. At the time of writing, Dogecoin is trading at approximately $0.2052, reflecting a rise of 10.8% over the past 24 hours.
