Dogecoin holders have been clamoring for access to the “moonshot” of the popular meme cryptocurrency and they can get it. That’s because a parabolic technical signal has returned that last appeared before the stunning 23,000% rally.
Keep reading to learn more about the signal and what it could mean for DOGE.
Dogecoin Tags Parabolic SAR: Another 23,000% Surge?
During the last crypto bull market, Dogecoin was one of the standout stars, outperforming Bitcoin, Ethereum, and most other altcoins. Fueled by meme mania, stimulus checks, and Elon Musk tweets, DOGE made a lot of people a lot of money.
Before the bullish phase in 2020, the Doge-inspired meme coin spent more than three years in a downtrend. Just before the breakout that sent Dogecoin soaring, DOGEUSD price action tapped the 1M Parabolic SAR.
Even a year after the monthly parabolic SAR was tagged on the USD trading pair, Dogecoin rallied more than 23,000% before reaching its peak in 2021.
Parabolic SAR has been activated. DOGEUSD on Tradingview.com
Can Parabolic SAR Revive Meme Coin Season Once Again?
Parabolic SAR J. Welles Wilder, Jr. who is responsible for creating other popular tools such as the Relative Strength Index, Average Directional Index, and Average True Range.
The acronym SAR stands for Stop and Reverse, and the tool is intended to tell an analyst that a trend has potentially stopped and reversed.
In 2020, the signal was actually the last point in Dogecoin before the downtrend stopped and new highs were reached. Now that the signal has restarted, what kind of move can we expect from the meme coin?
As mentioned, the last time it was tagged DOGEUSD it was up by over 23,000%. The Parabolic SAR also reached the 1M time frame just before another 6,200% rally in April 2017. The average of two key rallies suggests a potential 14,600% upside.
However, Elliott Wave theory indicates the first wave of any cycle will be of similar magnitude to the last wave – hinting at a 6,200% ROI if an uptrend materializes from here.