Dogecoin forms second low, signaling possible 4,000% rally

Dogecoin (CRYPTO:DOGE), the leading meme-based cryptocurrency by market cap, has recently formed a "second low" pattern, which some analysts suggest could trigger a 4,000% rally to over $4.

Crypto analyst Trader Tardigrade shared this perspective with his 55,100 followers on X, pointing to historical price movements where Dogecoin formed similar patterns and experienced significant price surges.

Analysing Dogecoin's price history, Trader Tardigrade highlighted how the meme coin found key support levels in 2015 and 2020, forming a second low in 2017 and 2021, respectively, before seeing massive rallies.

Following these patterns, Dogecoin appears to have hit another key support level in 2023 and has recently formed a second low, suggesting the potential for a dramatic price increase.

Trader Tardigrade's price chart analysis suggests that if this trend continues, Dogecoin could see a substantial rally that might push its price above $4 during the current bull cycle.

When asked if a breakout could happen after the U.S. Presidential elections on November 6, Tardigrade responded, "Not a bad guess," indicating possible political influences on market sentiment.

Another analyst, Ali Martinez, has also noted bullish signs for Dogecoin. Martinez identified a bullish divergence between Dogecoin's price and its Relative Strength Index (RSI) on the 4-hour chart.

A bullish divergence occurs when the price of an asset makes new lows while its RSI makes higher lows, often signaling that selling pressure is weakening and a price reversal could be imminent.

Martinez also pointed out that Dogecoin’s TD indicator is flashing a buy signal, indicating favorable conditions for an upward price movement.

Both analysts suggest that current market patterns and technical indicators are aligning to potentially set the stage for significant gains in Dogecoin's price.

At the time of reporting, the Dogecoin (DOGE) price was $0.09624.