Meme cryptocurrency Dogecoin (DOGE) is showing signs of preparing for its next parabolic rally, with technical indicators suggesting a potential surge that could target $3.50.
According to analysis by TradingShot, this outlook is based on the fact that for nearly a year, Dogecoin has been supported by its monthly 50-day moving average (MA), a critical level that has historically marked the start of its major bull runs.
In a September 4 TradingView post, the outlook pointed to a familiar “accumulation cylinder” structure forming once again, a pattern that has consistently signaled the transition from bear cycle bottoms into explosive bull cycle advances.
DOGE price analysis chart. Source: TradingViewPrevious cycles have followed a similar path where, once the MA50 take-off was established, DOGE entered a parabolic rally phase, each time reaching at least the 1.618 Fibonacci extension from its previous all-time high.
Based on this repeating setup, the analyst now views $1 as a realistic minimum target for the current cycle.
However, if momentum extends beyond the historical average, the Fibonacci projection places Dogecoin’s over-extension level near $3.50.
This level aligns with the same structural rally points seen in past cycles, where the cryptocurrency exceeded conservative targets before ultimately topping out.
If DOGE were to trade at $3.50, the token would command a market cap of around $543 billion, making it the second-ranked cryptocurrency, provided Ethereum (ETH) records minimal growth over the same period.
DOGE’s potential ETF roll out
Notably, market attention has increasingly shifted to Dogecoin as the meme cryptocurrency edges closer to the possible rollout of a spot exchange-traded fund (ETF), which is expected to drive institutional capital into the asset.
In the latest development, REX Shares and Osprey Funds have filed with the SEC under the Investment Company Act of 1940, paving the way for the first U.S. Dogecoin ETF, expected as soon as next week.
By using the faster “40 Act” route instead of the traditional S-1 and 19b-4 process, the issuers could bring their product to market ahead of rivals like Bitwise, Grayscale, and 21Shares, which remain under regulatory review.
DOGE price analysis
At press time, DOGE was trading at $0.22, up 0.23% in the past 24 hours, while over the past week the asset has declined about 0.22%.
DOGE seven-day price chart. Source: FinboldAlthough technicals and fundamentals point to a possible continued rally in Dogecoin’s price, the token needs to sustain its value above the $0.20 support level for any upward push to be maintained.
Featured image via Shutterstock
Source: https://finbold.com/dogecoins-accumulation-cylinder-set-to-go-parabolic-with-3-5-next/
