Dogecoin price staged a strong rally on Monday, crossing a crucial resistance level as the crypto market bull run continued.
Dogecoin (DOGE) jumped to $0.2735, its highest point since February 15, and 110% above its lowest point in April. This jump happened in a high-volume environment, with the 24-hour metric soaring to over $6.2 billion.
Dogecoin price technical analysis points to more gains
The daily timeframe shows that the DOGE price has more upside as two rare patterns are about to converge. First, the token formed a double-bottom pattern at $0.1425, and a neckline at $0.2595. A double bottom is one of the most common bullish patterns in technical analysis.
DOGE has now surged above the double-bottom’s neckline at $0.2595, its highest level on May 11. Moving above that level confirms the bullish outlook of the double-bottom pattern and points to more gains.
In this case, the pattern’s height is $0.117, which is derived from subtracting $0.1425 from $0.2595. Adding the height to the neckline gives the price target at $0.3765.
Dogecoin price is also about to form a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other. This pattern implies that the short-term momentum is strengthening.
The Average Directional Index has jumped to 42, the highest level since March 5 this year. A surge in the ADX metric means that the trend is accelerating.
Therefore, the DOGE price will likely continue rising as bulls target the key point at $0.3765, up by 38% from the current level. A drop below the support at $0.2500 will invalidate the bullish outlook.
Top 2 catalysts for DOGE price
There are a few catalysts that may push DOGE price higher in the coming weeks. First, Polymarket odds that the Securities and Exchange Commission will approve spot DOGE ETFs have surged to 80%. These ETFs will likely lead to more inflows from investors as Bitcoin and Ethereum have demonstrated. Bitcoin ETF inflows have jumped to $54 billion, while Ethereum’s have soared to over $7.4 billion.
DOGE price will benefit from the potential altcoin season index, which will lead to demand for both meme coins and utility tokens. Indeed, third-party data shows that whales are buying DOGE, while the open interest soared to a multi-month high of $4.83 billion.
