Dogecoin (DOGE) is showing strong bullish momentum, climbing 5.38% after bouncing off a key support level. The meme coin is now setting its sights on a potential rally toward $3, fueled by increasing network activity and positive technical indicators.
Analysts Eye Parabolic DOGE Rally
Crypto analyst Ali Martinez has highlighted Dogecoin’s positioning within a crucial price channel. According to Martinez, DOGE is currently holding at a major support level that could serve as the foundation for a strong rebound.
“If this support holds, we might see a rebound toward the mid or upper boundary of the channel,” Martinez stated, pointing to a possible bullish surge toward $3 and beyond.
A key indicator supporting this outlook is the stock Relative Strength Index (RSI). Martinez noted that DOGE saw explosive growth in October 2023 and February 2024 when the stock RSI formed a bullish crossover, rallying 88% and 187% respectively. With the stock RSI once again aligning for a bullish crossover, another major rally may be imminent.
Dogecoin Network Sees Surge in Adoption
Beyond price movements, the Dogecoin network is experiencing rapid expansion. Martinez pointed out that the number of new DOGE addresses has doubled in the past month, soaring from 16,400 to 34,600. This surge signals growing interest and adoption, reinforcing the potential for sustained price gains.
Technical Patterns Signal Incoming Bull Run
Crypto trader Tardigrade has identified a recurring pattern in DOGE’s price action. According to Tardigrade, Dogecoin typically establishes an initial low when the RSI enters the oversold zone, followed by a second, lower low while maintaining similar RSI levels. If this pattern repeats, DOGE could be gearing up for a major breakout.
#Dogecoin follows the pattern of its last bottom 🔥$DOGE forms an initial low as the RSI falls into the oversold zone, then creates another lower low with a similar RSI reading in the same zone.
— Trader Tardigrade (@TATrader_Alan) March 12, 2025
If history repeats, an upcoming Bull Run is ahead 🚀 pic.twitter.com/zxLPZrfkOq
As of press time, Dogecoin is trading at $0.172, with DOGE futures open interest surging over 4% to $1.40 billion. Liquidations have also spiked past $7.24 million, signaling heightened trading activity. Additionally, asset managers like Bitwise are actively pushing for a Dogecoin ETF, which could significantly bolster investor demand.
Also Read: Dogecoin Price Surges Amid Crypto Rebound: Analysts Predict $5 Target
With growing network adoption, bullish technical signals, and rising institutional interest, Dogecoin appears poised for a strong rally toward the $3 mark.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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