Dogecoin Forms ‘Second Low’ That Could Trigger 4,000% Rally Above $4

Dogecoin (DOGE), the biggest meme-based cryptocurrency by market capitalization, has recently formed a second low, suggesting that the meme coin might be gearing up for a possible 4,000% rally to recent all-time highs above $4.

Dogecoin Second Low Could Signal Big Gains Ahead

Trader Tardigrade, a crypto analyst, told his 55,100 followers on X (formerly Twitter) that Dogecoin has officially formed a second low after touching a crucial support level. He shared a price chart illustrating Dogecoin’s price movements since 2014, highlighting periods where the meme coin had formed a primary and second low after hitting a key support level, which then led to an enormous price surge.

Source: X

From 2014 and 2017, Dogecoin found support in 2015, followed by a second low in 2017, which triggered a considerable price rally that very same 12 months. The same pattern played out between 2018 and 2021, with Dogecoin reaching a critical support level in 2020, forming a second low in 2021, after which skyrocketing in value that 12 months.

Following this historical trend, Trader Tardigrade questions whether Dogecoin might follow an analogous price pattern or if this time can be different. The cryptocurrency has already hit a key support level in 2023, and recently established its second low, hinting that it might be preparing for a dramatic price increase.

Reviewing the value chart, the analyst points to a rally to the upside, suggesting that DOGE could potentially witness a staggering 4,000% price surge above $4 during this bull cycle.

When asked by a crypto community member if this bullish price breakout might occur on November 6, after the top of the United States Presidential elections and a possible Donald Trump win, Trader Tardigrade responded simply with, “Not a foul guess.”

The analyst has remained highly optimistic about Dogecoin’s future outlook, suggesting in a previous X post that Dogecoin can have finally reached its bottom within the current market downtrend, with indications of a significant bullish crossover on the horizon.

Bullish Divergence Points To Potential Upside

Popular crypto analyst, Ali Martinez has identified a singular technical pattern within the Dogecoin price chart. Martinez disclosed that Dogecoin is currently showing a bullish divergence against the Relative Strength Index (RSI) on the 4-hour chart.

A bullish divergence occurs when the value of a cryptocurrency is making recent lows while its RSI is hitting higher lows. This discrepancy is seen as an indication that the market is gaining strength, characterised by weakening selling pressure that may lead to a potential price reversal.

Martinez has also revealed that Dogecoin’s TD indicator was flashing a buy signal, suggesting that current conditions could also be favorable for a possible upward price movement. On the time of writing, the value of Dogecoin is trading at $0.096, reflecting a 2.53% decrease within the last 24 hours, in accordance with CoinMarketCap.