Dogecoin hits a key technical inflexion point with a bullish MACD crossover, sparking hopes for a $1 breakout

Dogecoin has kicked off May with a bang, soaring more than 33% this week alone as bullish momentum returns to the meme coin. After a quiet April, DOGE has climbed above the $0.22 mark, fuelled by renewed interest from both retail and institutional traders. This recent surge has many speculating about the possibility of Dogecoin reaching its long-awaited $1 milestone.

Amid this recovery, a powerful technical signal has emerged, suggesting that the latest rally may be just the beginning. A bullish MACD (Moving Average Convergence Divergence) crossover on the weekly timeframe is now flashing, and according to chartist Trader Tardigrade, this could lead to another explosive price movement for Dogecoin.

The MACD indicator, which has become a key tool for tracking momentum shifts in Dogecoin’s price cycles since October 2023, is showing signs of a potential breakout. The crossover, where the MACD line moves above the signal line, has historically signalled the start of powerful uptrends. In fact, the previous two MACD crossovers were followed by substantial rallies: one from $0.06 to $0.23 and another from $0.086 to $0.48.

The most recent MACD crossover in September 2024 resulted in a 460% rally, propelling Dogecoin to multi-year highs of $0.48. With the current price action closely resembling the structure seen during those previous rallies, there is growing optimism that the cryptocurrency could be gearing up for another significant price surge.

According to Trader Tardigrade’s chart analysis, the setup mirrors the rounded bottom pattern seen before previous rallies. The price structure is showing a higher low with a rounded bottom, and the MACD line is poised to cross above the signal line once again. This technical pattern suggests that Dogecoin could soon be primed for another major move, particularly as broader market sentiment is now positive, buoyed by Bitcoin’s recent break above the $100,000 mark.

So, what does this mean for Dogecoin’s price trajectory? Traders are now watching closely to see if the MACD crossover can trigger another rally similar to those of late 2023 and 2024. With the overall crypto market in a positive mood, the question on many minds is whether Dogecoin can finally break the $1 barrier.

Reaching $1 would require a significant price increase of around 335% from its current trading price of $0.23. This target aligns with a long-term ascending resistance trendline, which has previously guided Dogecoin’s price movements to its highs of $0.23 and $0.48 in this cycle. If the MACD signal plays out as it has before, Dogecoin could be on track for another meteoric rise, possibly heading towards the $1 mark by mid-2025.

However, achieving this ambitious target would require sustained momentum and continued positive sentiment in the broader cryptocurrency market. With Bitcoin leading the charge and altcoins like Dogecoin benefiting from the wave of bullish enthusiasm, many traders are hopeful that this could be the rally that takes Dogecoin past $1.

At the time of writing, Dogecoin is trading at $0.2335, up 3.4% in the past 24 hours, with an intraday high of $0.2569. If the MACD crossover confirms the bullish outlook, Dogecoin could be set for a powerful surge, with $1 no longer appearing to be a distant dream.