Dogecoin’s price surged 5.5% on Saturday to reach $0.144, outperforming the broader crypto market recovery. The DOGE price is riding a parabolic rally following Elon Musk’s ‘D.O.G.E.’ reference at a Trump campaign event, which has reignited investor excitement. With the rising price breaking out of a 4-month consolidation pattern, DOGE buyers appear poised to drive a prolonged rally.

The largest meme cryptocurrency by market cap has seen a nine-day rally from $0.105 to $0.144, representing a 36% surge. This upward momentum allowed DOGE to break through the $0.143 resistance level, signaling its escape from a four-month consolidation trend. Analysis of the weekly chart reveals a pattern similar to the one that preceded DOGE’s massive 29,111% rally in 2021.

The current price action shows a notable correction in DOGE, forming a bottom support during an extended consolidation period. This accumulation trend allows buyers to regain bullish momentum and trigger a ‘test pump’ to gauge sustainability for higher price levels. If history repeats itself, DOGE could experience a final dip before igniting a massive bull run. With sustained buying pressure, some analysts speculate the DOGE price could potentially rally 700% to reach $1.17.

The DOGE/USD daily chart shows the coin price reclaiming key weekly exponential moving averages (20, 50, 100, and 200), indicating strengthening buyer control over the asset.

Prominent crypto analyst DonAlt recently referred to Dogecoin as the “Bitcoin of memes,” highlighting its cultural significance in the crypto space. The analyst, who has been involved with DOGE since 2014, hinted at a bullish outlook for the meme coin.

However, data from Santiment shows Dogecoin’s 30-day Market Value to Realized Value (MVRV) ratio has climbed to 19.7%, signaling that short-term traders are experiencing considerable gains. Historically, such high MVRV values have been associated with local market tops, as traders often look to take profits at these levels.

The Dogecoin price may experience a temporary pullback to consolidate its recent gains and build momentum for further upside. However, to maintain its bullish trend, any retracement should hold above the 200-week EMA to prevent sellers from initiating a new corrective phase.