Dogecoin price déjà vu? Analyst predicts a 112% surge

Dogecoin price remained in a consolidation phase this week due to the pause of the recent parabolic rally.

Dogecoin (DOGE) was trading at $0.3850 on Wednesday, November 20, just below its year-to-date high of $0.4387.

This consolidation mirrors the consolidation of Bitcoin (BTC), which is fluctuating between $90,000 and $94,000.

However, Dogecoin has the potential to rebound in the coming weeks as investors monitor developments under the Trump administration. On Tuesday, Trump nominated Howard Lutnick, president of Cantor Fitzgerald, as Secretary of Commerce. Lutnick has previously supported cryptocurrencies, and his firm serves as the custodian of Tether.

Additionally, Trump appointed Elon Musk and Vivek Ramaswamy to head the new Department of Government Efficiency. There are also rumors that Trump Media may acquire Bakkt, a cryptocurrency company.

The combination of crypto-friendly regulations, Fear of Missing Out, and low interest rates could push Dogecoin significantly higher in the near term.

Dogecoin is also seeing strong demand, as evidenced by its daily trading volume reaching over $14 billion. This figure exceeds the combined volume of Shiba Inu, Pepe and Bonk. Similarly, futures open positions increased to $3.8 billion.

Crypto analyst expects Dogecoin price to rise on DOGE price chart | Source: crypto.news

According to Ali Charts, a well-known crypto analyst, Dogecoin has significant upside potential. He predicts that the price could rise 120% to $0.82.

On the daily chart, Dogecoin is holding above the key $0.2286 resistance level, which is marking the top of the cup and handle pattern.

DOGE is trading well above the 50-day and 200-day moving averages that formed the golden cross a few weeks ago. Additionally, a bullish pennant formation has developed, characterized by a vertical rise followed by a triangle formation. In technical analysis, this pattern often signals further gains.

Dogecoin is likely to see more bullish momentum if the pennant breaks above $0.4387. However, this bullish view may be invalidated if the price breaks below the support level of $0.3412, the low point on November 17.