Dogecoin Price Poised to Double – Will This Key Resistance Level Trigger a 100% Rally?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
The Dogecoin price could be set to more than double in the coming weeks, as the DOGE price threatens a breakout above a key resistance level.
The Dogecoin (DOGE) price was last changing hands just under $0.10, just above multi-week lows that it hit earlier in the day.
Dogecoin has been stuck in a falling wedge pattern since its price topped out near $0.23 earlier this year.
TradingView user MyCryptoParadise_Simon shared an article where he predicted a major surge should this falling wedge structure break.
DOGE would probably need to close around $0.12 to confirm a breakout above this wedge and above its 50DMAs.
The first major bullish target would be a retest of May’s highs around $0.17.
That would mark a near 100% rally for the Dogecoin price. But a retest of yearly highs near $0.23 would become very likely should this level go.
Looking at chart patterns and predicting major breakouts is all well and good, but are there any upcoming real world catalysts to drive such a move?
Yes, absolutely. The US Federal Reserve is on the cusp of beginning a new rate cutting cycle for the first time since 2020.
Past rate cutting cycles have been associated with parabolic rallies in crypto prices.
Fed interest rate cuts follow two trajectories:
1) a response to deflationary shocks (a.k.a. crises)
2) a response to gradually easing inflation
We are in the latter scenario, which almost always results in a big risk-on rally. pic.twitter.com/zTVefTWkAs
While a new meme season is unlikely to kick off the day that the Fed cuts interest rates for the
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