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.
The 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.
Zeberg 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.
“And if we can start to see Bitcoin bouncing off of this current levels and Ethereum, especially Ethereum doing the same, well then maybe that Dogecoin has one last dance which will take it to a new all-time high despite the fact that this was established on as a joke” – Henrik Zeberg stated.
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.
