Originally published on: December 13, 2024
Dogecoin’s price pattern is showing striking similarities to its behavior before its massive 8,000% rally in 2021, sparking speculation of another major breakout on the horizon.
Following a 480% rebound from its August lows and a significant rally after Donald Trump’s election victory, Dogecoin is now in a consolidation phase, trading within a narrow range of $0.39-$0.48. This pattern closely resembles the one seen before its previous breakout.
What’s even more intriguing is the weekly relative strength index (RSI), which has entered overbought territory, suggesting either a price correction or extended consolidation. However, history has shown that similar conditions in the past led to bullish continuations rather than significant downturns.
If Dogecoin follows the same trajectory as in 2021, it could potentially reach $0.75 by January 2025, representing an 85% price surge, according to Fibonacci retracement projections.
Onchain data further supports this bullish outlook, with addresses holding 1 million DOGE or more now at an all-time high of 130.2 billion DOGE. This increase in whale addresses signals growing confidence among large investors in Dogecoin’s upward potential.
Elon Musk’s influence, along with recent developments like the launch of the Department of Government Efficiency (DOGE), tied to Dogecoin’s ticker symbol, continues to drive demand and interest in the meme-inspired cryptocurrency.
While this article does not provide investment advice, it’s essential to conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
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