Dogecoin (DOGE) Follows Past Patterns With Recent Correction: Is This A Bullish Signal?

Date: Mon, Dec 23, 2024, 10:32 AM GMT

Before the ongoing correction, the cryptocurrency market experienced a bullish rally from November 5. The surge was attributed to Donald Trump's victory in the U.S. elections, which led Bitcoin (BTC) to reach an all-time high of $108,000.

Dogecoin (DOGE), a prominent memecoin, also soared during this period. DOGE rose from $0.16 on November 5 to a recent high of $0.4798, marking an approximate 200% surge. However, the market correction caused DOGE to retrace 46%, resulting in a low of $0.2624.

Currently, DOGE has rebounded slightly to $0.3159, but it still faces a 33% decline over the previous 30 days.

Retracement Mirrors Past Bull Runs

The current price trend of DOGE shows parallels to its previous parabolic cycles. Crypto analyst @ali_charts has observed that Dogecoin consistently experiences significant rallies followed by corrections before reaching new highs:

In 2017, DOGE rose 212%, corrected by 40%, and later skyrocketed by 5,000%.

In 2021, DOGE surged 476%, retraced 56%, and subsequently exploded by 12,000%.

In 2024, DOGE has already rallied by 440% and has retraced by 46%. If historical patterns repeat, analysts suggest the potential for another substantial parabolic rally.

Based on @ali_charts' analysis and previous cycle trends, Dogecoin could reach $20 during this bull run. However, this would require a significant increase in its market capitalization. With DOGE currently trading at $0.31 and a market cap of $46.55 billion, reaching this target would necessitate a substantial influx of capital.

Future Expectations

Considering Dogecoin's 46% retracement after a 440% rally, historical patterns indicate the possibility of a parabolic breakout in the future. If DOGE aligns with its previous cycles, such as those in 2017 and 2021, it could experience another explosive rally in the coming months.

While the potential for significant returns exists, caution is advised. The cryptocurrency market remains highly volatile, and corrections can extend before a recovery occurs.

Disclaimer: This article serves informational purposes only and does not constitute financial advice. Thorough research is essential before making any investment decisions.