Dogecoin Price Set for a Parabolic Rally: Here's Why

DOGE, the largest meme cryptocurrency by market cap, has showcased a nine-day rally from $0.105 to $0.144.

Dogecoin (DOGE) price soared by 5.5% during the Saturday trading session, reaching $0.144. This surge outperformed the broader market recovery, continuing a parabolic rally that began after Elon Musk mentioned “D.O.G.E.” during Trump's Pennsylvania campaign event. The rising price experienced a bullish breakout from a four-month consolidation trend, preparing DOGE buyers for a prolonged rally.

As the largest meme cryptocurrency by market capitalization, DOGE showcased a nine-day rally from $0.105 to $0.144. This 36% surge can be largely attributed to Elon Musk's influence. When Elon mentioned “D.O.G.E.” during Trump's campaign event, it sparked renewed interest and excitement within the Dogecoin community.

A high-momentum rally managed to cross the $0.143 resistance, indicating that the DOGE price escaped a four-month consolidation trend. Furthermore, a weekly chart analysis reveals a similar pattern that drove a massive rally of 29,111 % in 2021.

Comparing the price analysis, we can observe a significant correction in DOGE price, which then shifts sideways to form a bottom support in prolonged consolidation. This accumulation trend enables buyers to regain the bullish momentum and trigger a ‘test pump’ to check sustainability for higher rallies.

If history were to repeat itself, the Dogecoin price encountered a final dip before igniting the massive bull run. With sustained buying, the DOGE price could rally 700% to hit the $1.17 level.

Moreover, the coin price reclaiming the weekly exponential moving average (20, 50, 100, and 200) indicates that the buyers are strengthening their control over this asset.

In a recent tweet, renowned crypto analyst DonAlt joined the conversation about Dogecoin, playfully calling it the “Bitcoin of memes” and highlighting its cultural significance in the crypto space. He further mentioned his long-term involvement with DOGE, having been a part of the community since 2014.

The Bitcoin of memes is DOGE, isn’t it? Like when you actually think about it

— DonAlt (@CryptoDonAlt) October 17, 2024

CryptoDonAlt then went on to humorously suggest a bullish narrative for Dogecoin price prediction, as he stated that he might end his trading career with DOGE in 2025.

DOGE’s 30-day Market Value to Realized Value (MVRV) ratio has climbed to a substantial 19.7% level, according to recent data from Santiment. This indicates that short-term traders are experiencing significant gains. The MVRV ratio measures the average profit or loss of traders holding DOGE within a specified time frame and serves as a key indicator of market sentiment.

Historically, such high MVRV values have been observed around local market tops, as traders tend to capitalize on their gains.

The Dogecoin price could encounter an occasional pullback to replenish the bullish momentum. The anticipated pullback should hold its value above the 200-weekly EMA; otherwise, sellers could drive a fresh correction trend.

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