Dogecoin’s breakout from the 3-year channel shows potential for 500% support in 2025.
Dogecoin (DOGE) price rose more than 75% in October to reach $0.172 before the end of the month, the highest level since May 2024.
Memecoin's gains were largely due to Elon Musk's New York campaign talk of Donald Trump on October 27 discussing his plan to save $2 trillion from taxpayers through the Department of Government Efficiency. Same initials as the Dogecoin token, DOGE.
Dogecoin is now showing a technical pattern that could push its price to $1 and above.
DOGE emerges from a symmetrical triangle with a length of 3 years
Dogecoin's ability to reach $1 in the current bull cycle stems from its breakout from the massive symmetric triangle pattern that has been active since April 2021.
In technical analysis, symmetrical triangles are typically continuation patterns that resolve in the direction of the previous trend, with the maximum distance between the upper and lower trend lines of the triangle increasing.
Dogecoin price showed a symmetrical triangle breakout during the 2020-2021 period where it broke above the pattern's upper trend line and followed an impressive 31,375% rally.
As of October 2024, the price of DOGE appears to be entering a similar breakout level.
DOGE/USD weekly price chart. Source: TradingView
Applying the technical rule, the price of DOGE is looking at $2 as a potential target in the coming years, with the potential to reach $1 sometime in 2025.
Another key indicator supporting the bullish outlook is Dogecoin's weekly Relative Strength Index (RSI), which has risen above its historical support zone around 46 in July.
Historically, RSI supports have often resulted in sustained rallies following consolidation patterns such as symmetric triangles, adding weight to the $1–$2 price target if the breakout continues. 500-1,000% higher than current price levels.
Conversely, if the DOGE slips below the upper trend line of the giant triangle, it is more likely to continue in the range, starting with a decline to the $0.09-0.07 range, coinciding with the 50-week EMA (red wave) and the lower trend line of the triangle.
A Trump win should boost DOGE's value.
The new Musk-Trump relationship could further fuel Dogecoin's bullishness if he wins the 2024 election, which Trump is known for appealing to the same retail outlet.
Source: X
Musk confirmed that he would work with the Trump administration on efficiency initiatives, fueling speculation with the shared acronym “DOGE” and reinforcing Dogecoin's meme appeal. This is similar to the tweets and self-titled “Dogefather” that caused DOGE to increase by 64,000% during the 2020-2021 bull market.
Related: Experts answer: How is Elon Musk influencing the crypto space?
At Polymarket, Trump's His odds of winning the 2024 election are currently at 64.1%, better than Vice President Kamala Harris' 35.9%.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
