Cryptocurrency enthusiasts are turning their attention back to Dogecoin (DOGE) as it displays a technical signal that historically heralds a parabolic surge in value.
During previous bullish trends in the market, memecoins reaching a parabolic state often signaled the peak, indicating the maximum enthusiasm among investors. The 2020–2021 bull market experienced a similar speculative frenzy: Dogecoin DOGE, aiming for $1, surged alongside Shiba Inu SHIB, which experienced a remarkable rally of thousands of percentage points. Nonfungible token prices soared to staggering highs, reaching six to seven figures.
Despite a modest 13.6% year-to-date increase, DOGE’s recent 33.2% surge over the last month has attracted attention from analysts.
One such observer is crypto trader Tony “The Bull,” who highlighted DOGE’s price surge coinciding with the one-month parabolic SAR indicator—a pattern that previously led to a 23,000% rally.
For traders who rely on technical analysis, the parabolic SAR serves as a tool to identify potential “stop and reverse” signals in an asset’s trajectory, signaling possible price levels where a trend might reverse.
Analysts are also eyeing DOGE’s Fibonacci levels to gauge potential price movements in the medium term. Referring to the monthly time frame, $0.12 stands out at the 0.618 Fib level as a medium-term target. Meanwhile, the 1.618 Fib level indicates a potential $0.23 terminal point for the ongoing DOGE swing trade.
Last week, traders paid close attention to trading volumes and open interest, noting a surge in DOGE open interest to a two-month high and trading volumes reaching a six-month peak. These metrics could indicate increased market activity and interest in DOGE trading.