Dogecoin price targets $0.60 after a 40% increase in a week

The price of Dogecoin (DOGE) has recorded an increase of nearly 40% over the past seven days, outperforming the overall crypto market, which only rose about 8% during the same period.

Daily chart of DOGE/USD compared to the total crypto market capitalization | Source: TradingViewThe current top memecoin is showing positive signals for price growth in the coming weeks, thanks to a combination of technical and on-chain factors.

DOGE price breakthrough indicates a potential increase of 95% in the future

The weekly DOGE price chart shows a breakout from a multi-month symmetrical triangle pattern, a continuation bullish pattern. At the moment, DOGE is trading at around 0.296 USD. More importantly, the trading volume during the breakout phase has increased more than threefold, indicating strong bullish momentum.

DOGE/USD weekly price chart | Source: TradingViewThe price of DOGE has the potential to rise to the maximum height of the triangle, with a breakout target of around $0.60, equivalent to an increase of approximately 95% from the current price, in October.

Some chart analysts, such as CryptoKing and CryptoGoos, have adjusted the target for the symmetrical triangle down to 0.45 USD. This level aligns with the upper trendline of a larger triangle pattern that extends over several years, as illustrated below.

DOGE/USD weekly price chart | Source: TradingViewDogecoin's RSI index reinforces the bullish setup, after falling below the overbought threshold of 70. However, DOGE supporters need to defend the support level at the 50-week EMA(50-week EMA; the red wave) near $0.227 to confirm this setup. A decisive close below this level could push Dogecoin lower, targeting the 200-week EMA around $0.215.

Can DOGE repeat last November's 230% increase?

The MVRV Z-Score of Dogecoin is currently at around 1.35 as of Saturday, a metric that often appears before major price increases in previous cycles, including a 230% increase in November last year.

DOGE's MVRV Z-Score Chart Compared to Price | Source: GlassnodeMVRV Z-Score measures the valuation of DOGE against the price most investors have paid. A very high score (especially in the red area) indicates that the market is too hot, as investors are holding large unrealized profits. Conversely, a very low score (below the green area) indicates undervaluation, where most investors are at or below their original price.

For example, in 2021, the Z-Score exceeded 20 when DOGE peaked at 0.70 USD, clearly signaling excess in the crypto market.

The modest level of 1.35 currently indicates the opposite: investors are not holding on to huge profits, leaving plenty of room for price increases before overbought conditions appear. This further confirms that DOGE still has a lot of potential to grow in the coming weeks.

Mr. Giáo