Dogecoin (DOGE), the meme coin with the leading market capitalization and liquidity in the crypto market, is showing several potential signs of a new short-term rally.
Analysis from Swissblock and its notable correlation with Bitcoin are raising hopes that DOGE could recover after five consecutive months of decline.
Swissblock Predicts DOGE May Face a “Last Dance”
Altcoin Vector, the institutional altcoin research arm of Swissblock, recently pointed out that DOGE’s Impulse index is showing a notable signal. The Impulse index is Swissblock’s proprietary indicator that measures an altcoin’s momentum.
A strong surge in the Impulse indicator could become the final trigger. It could activate a new price rally for DOGE.
DOGE Impulse Performance. Source: Altcoin VectorThe analysis also highlights a notable correlation between Bitcoin and DOGE. The two assets have shown significant alignment over the past several months. Data from DefiLlama shows that the 1-year, 1-month, and 7-day correlation coefficients between BTC and DOGE are 0.79, 0.83, and 0.88, respectively.
In the final week of February, Bitcoin recovered from $62,700 to $67,700. It also showed signs of a return to dip-buying flows. This could be a factor reinforcing Swissblock’s forecast.
Henrik Zeberg, Head of Macroeconomics at Swissblock, presented a bullish scenario for DOGE.
In his latest analysis, he applied Elliott Wave theory. He argued that DOGE is currently in Wave 4 and preparing to enter Wave 5. Wave 5 is the final rally of a major cycle. Therefore, he described the upcoming scenario as a potential “last dance” for DOGE.
Dogecoin (DOGE) Price Structure. Source: SwissblockZeberg compared the structure with historical performance. Wave 1 increased 22x. Wave 3 rose 65x. Wave 5 could still achieve a significant gain of 25x to 53x.
DOGE’s Recovery Needs More Than Just Technical Signals
From a short-term technical perspective, traders also observe a breakout pattern forming. This reinforces the bullish outlook. If the breakout succeeds, DOGE could quickly retest key resistance levels. That would support the argument for a strong final rally within the cycle.
Unlike low-cap meme coins, DOGE has a market capitalization of more than $16 billion and a daily trading volume exceeding $1 billion. Its upward momentum requires strong participation from crowd capital flows.
History shows that this usually happens when DOGE is influenced by major news or by a highly influential figure such as Elon Musk. Therefore, to regain its spotlight, DOGE may need a new narrative. It may need more than technical breakthroughs alone.
Source: https://beincrypto.com/why-dogecoin-may-be-approaching-its-last-dance/
