Recently, attention in the cryptocurrency market has shifted back to Dogecoin. Analysts comparing current price movements to previous mini cycles point out that the coin is now moving within a tight accumulation zone for the third time. Signs of recovery in several technical indicators have fueled expectations for a potential breakout.
New cycle signals for Dogecoin
Recent analyses of the Dogecoin chart highlight that, just like in its previous two cycles, the price has moved sideways for a considerable period before accelerating sharply. According to data shared by Bitcoinsensus, the first accumulation phase led to a 190 percent surge, while the second triggered a remarkable 480 percent rise. The price is now seen consolidating in what appears to be a third accumulation box.
Market commentators are now debating whether this period of stabilization could be a precursor to another explosive move. After peaking in the final quarter of last year, DOGE faced resistance from a descending trendline. If this resistance is broken, previous mini cycle rallies could be repeated.
Technically, the Relative Strength Index (RSI) has shown signs of bouncing back from oversold levels. The RSI climbing back above its signal line is being interpreted as the start of renewed upward momentum. However, for Dogecoin’s rally to continue, buying interest must strengthen further.
The central point of discussion now is whether Dogecoin can break out of its current horizontal range to launch another mini cycle. If the accumulation zone is maintained and the trendline breaks upwards, a repeat of earlier cycles could be in play, according to analysts.
In the short term, the market expects buyers to defend the current price zone and for the price to overcome resistance. Should this scenario play out, Dogecoin investors are increasingly anticipating a new upward move.
Is 0.6533 dollars the next target?
Another technical analysis focuses on the positive divergence emerging in Dogecoin’s long-term MACD indicator. Analyst Javon Marks notes that DOGE has broken above its downtrend line from the 2021 peak, structurally strengthening as it establishes higher lows and highs.
This so-called “bullish divergence” in the MACD chart is often seen as a signal for a potential trend reversal. Analysts highlight that even as the price forms weaker lows, a strong recovery in momentum can pave the way for a new upward phase.
Looking at the technical picture, Javon Marks indicates that the first major target is 0.6533 dollars. He believes this level could mark the beginning of a larger move and potentially bring Dogecoin back to its price levels from 2021.
The same analysis suggests that if Dogecoin breaks above the 0.6533 dollar resistance, it could open the way for gains up to the 1.25 dollar region. However, such progress depends on short-term resistance and the accumulation zone remaining intact.
The prevailing scenario in the market remains centered on whether Dogecoin can maintain this recovery momentum, supported by positive MACD signals. Should buying activity increase and the recent base hold, a broader uptrend in DOGE’s price could be on the horizon.
