Dogecoin has the potential to increase 795% - Technical signals show positive prospects

Dogecoin is currently under pressure from strong resistance levels, but early signs of a trend reversal could signal an upcoming breakout. The coin is now trading at $0.09, up 1.34% in the past 24 hours — a positive sign after consecutive declines.

Current Market Situation and Supertrend Resistance Level

Looking at the short-term chart, Dogecoin still faces technical resistance. The Supertrend indicator is currently at $0.108846, significantly higher than the current price. This gap indicates selling pressure has dominated the market since late January, with the 24-hour chart showing volatility from $0.092 down to $0.08878.

On longer timeframes, the picture becomes more complex. Over the past 7 days, Dogecoin has fallen 7.08%; over the last 30 days, down 7.16%; and over the past year, it has lost 44.45% of its value. These figures show a prolonged downtrend, but the big question is whether this is just a correction phase or the start of a major shift.

Technical Indicators Show Signs of Reversal

Some promising signs are emerging in detailed technical analysis. The MACD indicator, a tool tracking market momentum, is showing optimistic signals. Specifically, the histogram has shifted from red (bearish) to green (bullish) in recent sessions. The MACD line is at −0.004250, just crossing above the signal line at −0.004404.

Although both lines are still in negative territory, this divergence is significant — it suggests selling pressure is waning. This hints that a shift in supply and demand balance may be underway. To confirm a reliable reversal, Dogecoin needs to break above the Supertrend resistance, which would signal a clear move away from the current downtrend.

Morning Doji Star Pattern — A Foundation for a 795% Breakout?

One of the most notable findings comes from the monthly chart analysis. Trader Tardigrade, a well-known figure in the technical community, pointed out that Dogecoin has formed a classic Morning Doji Star pattern on the monthly timeframe. This pattern is particularly meaningful — history shows that previous formations of this pattern often preceded major reversals.

The Morning Doji Star consists of three candles: a red (down) candle, a Doji (indecision but closing near open), and a green (up) candle. This pattern signals the end of a downtrend and the beginning of a strong bullish reversal. The monthly chart also shows a clear upward curve targeting near $0.80.

The Path to a 795% Increase — Is It Feasible?

From the current price of $0.09, reaching the target of $0.80 would require approximately a 795% increase. While this may seem large, based on the pattern analysis and technical indicators, it’s not impossible. Early signals from MACD, combined with the Morning Doji Star pattern on the monthly chart, support this potential.

However, note that the nearest support zone is around $0.088–$0.085, where Dogecoin might find temporary footing if the downtrend continues. The key question is whether the coin can break through the Supertrend resistance and establish a new base for further gains.

What will trigger the next breakout remains uncertain. Factors could include shifts in market sentiment, strategic news, or macroeconomic trends. Nonetheless, with current technical signals, investors should not rule out the possibility that Dogecoin could achieve this 795% target over the coming period.

Disclaimer: This content is for educational purposes only and should not be considered financial advice or a trading recommendation. The opinions expressed are based on technical analysis and may change. Readers are encouraged to conduct thorough research before making any investment decisions. Trading digital assets involves high risk.