Dogecoin has returned to technical levels that have historically favored accumulation, and the memecoin is testing long-term support as weekly momentum cools. This setup, developed by Cryptoinsightuk's Will Taylor, suggests a potential 300% price move if DOGE is able to trade at the upper end of its multi-year range once again.
Will Dogecoin price explode by 300%?
Taylor's paper is built almost entirely on structure. On the weekly DOGE/USDT chart he shared, Dogecoin was sitting around $0.09006, pushed to the lower end of a broad pennant formation that has suppressed price volatility for years. The same chart shows the expected value to around $0.27304, labeled as a 302.43% upside swing from current levels.
“DOGE is once again at a very interesting level technically. The weekly RSI appears to be compressing as downside momentum slows,” Taylor said in X.
This combination is at the heart of a bull market. In Taylor's view, Dogecoin isn't just floating in price support. We are also moving back to the historically highest volume zones on the volume profile, the areas where buyers and sellers used to do the most trading.
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For technical traders, such confluence is important. Previous accumulation bands, long-term up support lines, and a large number of nodes clustered in the same area could strengthen the argument that the downside is becoming less efficient.
Weekly RSI readings are also central to his call. Although Taylor did not attach a numerical target for the indicator, the chart shows that the RSI has compressed near the lower end of its recent range and the momentum curve is flattening after an extended period of decline. His reading is that selling pressure is slowing rather than accelerating, making the current zone more interesting for spot additions than momentum shorts.
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“If you build up and just play the range, you're going to see a 300% increase,” he says. “The technical discussion is that it will break out positively as well. I think I'm going to take a few stabs at Doge here, although technically it's great as a spot buy.”
Mr. Taylor also posted the DOGE/Gold chart via X. On its weekly pair, Dogecoin appears to have revisited a notable support zone after a long decline, while the RSI appears to be subdued once again and approaching oversold territory. While a chart of relative strength like DOGE/gold does not guarantee a reversal in USD terms, it can strengthen the idea that the asset is approaching an area where underperformance can extend.
At the time of writing, DOGE was trading at $0.09346.
Featured image created with DALL.E, chart on TradingView.com
