Prominent market analyst Ali Martinez predicts that Dogecoin (DOGE) could experience a powerful rebound as its Stochastic Relative Strength Index (Stoch RSI) prepares for a bullish crossover.
Dogecoin has recorded two consecutive daily gains for the first time since March 2. The meme coin rebounded 22% from a low of $0.1427 on Tuesday to a high of $0.1742 yesterday, reflecting a broader market recovery. This resurgence follows speculations that Donald Trump is open to resolving the tariff war with Canada.
Dogecoin Poised for a Strong Rally
DOGE’s latest rebound has helped it recover earlier losses this week while forming a dragonfly doji on the daily chart. This price action aligns with a bullish crossover on the Stoch RSI, a key momentum indicator.
Market analyst Ali Martinez highlighted this bullish signal, emphasizing its potential impact on Dogecoin’s price. In a tweet on Wednesday, Martinez suggested that DOGE could be on the verge of a parabolic rally, citing historical data on the Stoch RSI’s influence.
Historical Trends Suggest a Massive Price Increase
Martinez pointed out that previous Stoch RSI crossovers on the weekly timeframe have led to significant price increases for Dogecoin.
In October 2023, the Stoch RSI flipped bullish, triggering an 88% surge from $0.0569 to $0.1075. A similar situation occurred in February 2024 when another bullish crossover led to a 187% increase, with DOGE climbing from $0.0793 to $0.2290. The most notable rally happened in September 2024, when Dogecoin skyrocketed 444% from $0.0890 to $0.4846, marking its highest point in the current bull cycle.
Now, Martinez identifies that DOGE’s weekly Stoch RSI is on the verge of another bullish crossover. If this scenario materializes, he predicts a strong upward trajectory.
Interestingly, each of the last three crossovers has produced larger price gains than the previous one. If this pattern continues, Dogecoin could rally by at least 444%, surpassing its all-time high and potentially reaching $0.914.
Read more: Dogecoin Struggles at $0.2101: Will It Hold or Crash Below $0.17594?
Higher Prices Could Follow the Rebound
In the short term, Dogecoin continues to show bullish momentum. On Tuesday, the TD Sequential indicator hinted at a bullish reversal, pushing DOGE above the critical $0.16 support level. Analysts believe this move could set the stage for a breakout toward $2.
If Dogecoin maintains this trend, it could push even higher. Some projections suggest that DOGE could reach $8.5 when the third wave of its Elliott Wave pattern kicks in.
Currently, Dogecoin trades at $0.1715, with its RSI at 37.63, close to the oversold territory. With technical indicators aligning, the meme coin could be gearing up for another explosive move in the coming weeks.
