Dogecoin (DOGE) is one of the top ten most capitalized cryptocurrencies. At present, Dogecoin is trading at $0.08717 with a 24-hour volume of $ 806.10M and a market capitalization of $12.48B. The price of Dogecoin (DOGE) for the last 24 hours has gone up by 1.69%.
Based on the analysis by Ali Martinez, a crypto analyst, Dogecoin’s price movements seem to have imitated what had happened during its previous bullish cycles. If history repeats, $DOGE could experience a parabolic breakout around April.
The analyst noted that an unprecedented rise occurred between 2017 and 2018. This rally lasted for 97 bars or over 679 days, pushing DOGE’s price up by more than 80000%.
Another significant rally similar to some past occurrences took place between 2020 and 2021. This rally went through 97 bars that spanned approximately 679 days, just like the earlier breakout. Nevertheless, DOGE completely smashed all other preceding thresholds because, during this time, it had such an extraordinary growth momentum, reaching more than 23000%, resulting in its ATH at $0.73.
The analyst observes similarities between the current price action of DOGE and what transpired during these historical bull runs. Based on this comparison, the analyst suggests that DOGE might be gearing up for a similar price explosion.
Parallels to 2020: A Sign of Dogecoin’s Potential Bull Run
Last week, on February 22, the analyst drew parallels between this latest price action by Dogecoin (DOGE) and what took place in 2020. To understand what this might mean, we must dig into the past and compare it with where DOGE stands today.
In 2020, there was a series of events that led to a sudden rise of Dogecoin: Beginning on May 1st, 2020, DOGE broke out from a descending triangle chart pattern, a technical signal usually indicating an imminent price surge. This breakout was recorded around $0.0029.
After breaking out, from May 8th to June 1st, 2020, DOGE consolidated with the price action ranging within the defined limits. Such a move likely presented an opportunity for buyers to accumulate in preparation for the next move.
Then, in July, the consolidation phase finally put an end, and DOGE exploded into a parabolic uptrend, recording monstrous 23000% gains by the year’s end, culminating in an all-time high of $0.7378 in May 2021.
Over the past few weeks, DOGE has broken out of another descending triangle pattern, giving a potential upside target. Currently, DOGE is in a consolidation phase and mirroring the pattern observed in 2020. This has prompted Martinez and a few other analysts to wonder if DOGE is again on the move to another massive bull run.
Beyond chart patterns, a couple of points are needed to be considered. The bullish side is the increased use of DOGE as a payment method, which would bring in more demand and utility toward it. A resolute digital currency, DOGE, is backed by ongoing support from the active and engaged DOGE community.
Secondly, influencer endorsements, especially those emanating from Elon Musk, are still coming in, hence enabling it to add up its list of investors who pour funds into the coin.
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