Dogecoin (DOGE) remains a focal point for traders, with analyst Ali Martinez projecting a potential surge to $6,24. This would require an extraordinary 2973,89% price increase from current levels. Despite its volatile nature, DOGE continues to trade within a long-term ascending parallel channel, maintaining a bullish market structure.

A key support level at $0,16 is crucial for Dogecoin’s trajectory. If this level holds, a rebound toward $2,74 becomes more likely, aligning with the 1.272 Fibonacci extension level. However, DOGE must first overcome resistance at $0,56958, which represents the 1.00 Fibonacci mark. A break above this barrier could set the stage for further gains.

Is a Massive Rally Possible?

While historical patterns indicate potential for parabolic growth, DOGE has struggled to sustain long-term uptrends. In the last bull cycle, it reached an all-time high of $0,7376, largely driven by hype and high-profile endorsements. The current cycle, however, has seen more measured rallies, often followed by sharp corrections.

Martinez remains optimistic, noting that if momentum continues to build, Dogecoin could break past key resistance levels and push toward $6,24. This price level corresponds with the 1.414 Fibonacci extension, further reinforcing its technical significance.

Bearish Signals and Potential Risks

Despite bullish projections, market indicators suggest caution. Dogecoin is currently trading around $0.2021, reflecting a 3,29% daily decline. The Relative Strength Index (RSI) sits at 37.65, nearing oversold territory, while the Moving Average Convergence Divergence (MACD) remains negative.

If DOGE fails to hold above $0,1978, it could face further downside toward $015, a level not se,en in months. However, strong accumulation at these levels could trigger a relief rally.

What’s Next for Dogecoin?

For DOGE to sustain an uptrend, it must reclaim key resistance levels and establish bullish momentum. While a surge to $6,24 remains speculative, Dogecoin’s history of rapid price movements makes such projections within the realm of possibility. The coming weeks will be crucial in determining whether DOGE can defy market conditions and rally toward new highs.