Dogecoin shows historical patterns of parabolic rallies after retracements, hinting at a potential explosive surge in 2024.
Technical indicators suggest $DOGE is consolidating, with resistance at $0.35 and support near $0.30 signaling possible breakout levels.
Reduced volume and neutral momentum imply market hesitation, but history suggests stabilization could lead to significant upward moves.
The 2024 price fluctuation of Dogecoin exhibited comparable trends from 2017 and 2021, beginning the year with a 440% rise and retracing 46%. Historically, huge parabolic rallies have followed these retracements. According to cryptocurrency analyst Ali, comparable circumstances can trigger yet another meteoric rise.
Dogecoin's Volatile History Reflects Predictable Patterns
During 2017, $DOGE saw a 5,000% explosion, a 40% drop, and a 212% spike. The same is true for Dogecoin, which saw a 476% increase, a 56% decline, and then a 12,000% increase in 2021. The 2024 retracement currently suggests a possible upward trend.
https://twitter.com/ali_charts/status/1871097660888813871
Between 2017 and 2018, $DOGE experienced a 9,363% increase, rising from $0.00025 to $0.01857. After that, it dropped precipitously to $0.00042. In 2020, Dogecoin remained subdued below $0.01 until 2021 brought renewed bullish momentum. That year, prices surged from $0.00781 to $0.01142 before falling by 56%.
Technical Indicators Suggest Consolidation and Potential Breakout
Recent price action shows $DOGE consolidating near $0.31460 after falling 22.66% from $0.40646. Resistance lies at $0.35107, a level where previous rejections occurred. Buyers have defended support at $0.30, creating a stable price range.
Volume analysis highlights declining activity following a recent price drop. This indicates reduced participation, though interest may reignite soon. The stochastic RSI, at 36.67, reflects market neutrality with balanced buyer and seller momentum.
Source: BingX
Moreover, the Awesome Oscillator (AO) reads -0.01942, suggesting weak bearish momentum. Fluctuations near the zero line hint at potential trend formation. Dogecoin’s upward channel offers hope for bulls, as stabilization often precedes strong breakouts. While resistance at $0.35 challenges upward momentum, a breach could signal significant gains.
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