Dogecoin Breaks Out Reflecting 2020, Analysts Predict Target of 1 USD

Dogecoin is emitting familiar signals reminiscent of its historical bullish phases. Cryptocurrency analyst CryptoKaleo reports that Dogecoin is forming a falling wedge pattern, similar to the setups preceding major bullish runs in 2017 and 2021.

Historically, these patterns follow prolonged falling trends and accumulation phases before generating strong price movements. According to Kaleo, Dogecoin has just broken out of this falling wedge pattern, potentially setting the stage for a strong bullish rally. The chart shows that if this pattern continues, DOGE could rise to $0.64. In a similar setup at the end of 2024, Dogecoin increased by nearly 250%. At the time of writing, this coin is trading at $0.2114, after having increased by 30.58% in the past seven days. This breakout, supported by technical indicators, is being compared to the legendary bullish surge of this coin at the beginning of 2021. Future Interest Rates Rise Boosts Optimistic Sentiment Recent data from CoinGlass confirms a surge in the open interest of Dogecoin futures, now nearing $1 billion. The increase in futures positions closely follows the price recovery of this coin, reflecting renewed interest from traders using leverage.

This trend was previously often accompanied by large price fluctuations, with similar patterns seen in the bullish phases at the end of 2023 and the beginning of 2024. The correlation between price movements and open futures contracts indicates an increasing participation in the market. Analysts note that such conditions could act as a launch pad for strong price fluctuations. When DOGE breaks through long-term resistance, the combination of technical breakout and futures trading activity could support the next bullish momentum. The Main Levels and Potential of Altseason DOGE is currently holding steady above the nearest support levels of $0.18424 and $0.16292. Maintaining the bullish momentum above these levels is considered very important to confirm the breakout.

Technical forecasts remain unchanged as long as the price stays within this bullish structure. Traders are watching the range of $0.20 to $0.22 for signs of sustainable buying pressure. A continued bullish movement could push Dogecoin to the many-dollar price level, repeating previous cycles. With interest in the meme coin rising again, analysts suggest that DOGE's breakout could also mark the beginning of a new altcoin season. $DOGE {spot}(DOGEUSDT)