Dogecoin Retests 100 SMA: Will Past Trends Lead to Another Strong Breakout?

Dogecoin has repeatedly bounced off its 100-day Simple Moving Average (SMA), demonstrating consistent support prior to significant price increases. The 100-day SMA has historically been a crucial level for Dogecoin, often preceding breakouts after periods of consolidation. Defying this SMA has frequently resulted in sharp rallies and renewed momentum.

Dogecoin's price action also shows significant interaction with the 100-week SMA, mirroring past trends of strong breakouts. The cryptocurrency has previously tested this level before experiencing major price rallies, making its recent interaction noteworthy.

Historical Interaction with the 100 SMA

Dogecoin's price history reveals numerous instances of consolidation and subsequent breakouts after encountering the 100 SMA. Before its 2017 upward trend, the price resided below this moving average. Similar patterns emerged in 2020, preceding a substantial rally extending into 2021.

Before significant uptrends in 2022 and 2023, the price fluctuated around and returned to the 100 SMA. This repeated interaction highlights the SMA's role as a support level before price acceleration. Each consolidation phase near this moving average has foreshadowed notable price surges.

Recent Market Developments

Technical analyst Trader Tardigrade observed Dogecoin's recent (2024) retest of the 100 SMA. Past behavior suggests that touching this level often precedes strong upward momentum. The analyst's chart includes green markers highlighting key points where Dogecoin successfully rebounded from the SMA.

Source: Trader Tardigrade

Purple markers, according to Tardigrade, represent resistance points where the price temporarily stalled before establishing a clear directional trend. Each approach to the moving average showed accumulation phases preceding breakouts. Historical patterns strongly suggest this level's significance in market movements.

Market Outlook

Dogecoin's current price action aligns with historical patterns, where testing the 100 SMA potentially precedes a price increase. The market has previously seen extended consolidation at this level before breakouts. If this pattern repeats, a strong uptrend could follow. Market participants are closely monitoring Dogecoin's price behavior to determine if the historical correlation with the 100 SMA remains valid. Future price action will ultimately confirm whether another rally follows this latest test of the moving average.