Dogecoin may be on the verge of breaking the $1 barrier if it can repeat its historic 2021 trend, which saw a stunning 7,000% increase. Currently trading at $0.3927, Dogecoin has been one of November’s top-performing cryptocurrencies, gaining momentum following Donald Trump’s victory in the U.S. elections. Over the past month alone, DOGE has seen a 229% increase.
A Shift in Market Structure
Dogecoin’s market structure recently shifted around the $0.37 level, a point of significant turnaround previously observed in October 2021. If the memecoin follows its historical pattern, it could push beyond this ceiling, opening up the potential for even higher gains.
Classic Inverse Head-and-Shoulders Pattern
Veteran trader Peter Brandt has highlighted a classic inverse head-and-shoulders pattern in Dogecoin’s recent price action. Brandt noted that this pattern, combined with traditional charting principles, reflects a similar accumulation phase that DOGE exhibited in 2020 before its massive rally. Recently, a breakout from this pattern led to a 190% surge in Dogecoin’s price, underscoring its potential for further gains.
Economist and crypto trader Mikybull also pointed to a golden cross on Dogecoin’s weekly chart, suggesting the potential for significant upside. Although Dogecoin rallied nearly 7,000% in 2021, Mikybull estimates that a more moderate peak of $3 to $4 may be achievable this cycle, representing an approximate 1,136% increase.
Support and Potential Retest Levels
On November 12, Dogecoin reached a high of $0.44 before pulling back 22% to $0.34. Since then, DOGE has been oscillating within this range. Market observers are anticipating a possible bullish reaction after Donald Trump’s recent announcement, naming Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (D.O.G.E), sharing its acronym with Dogecoin.
From a technical perspective, Dogecoin’s immediate support zone lies between $0.30 and $0.326, where the price may stabilize. Should it fall below $0.30, an order block between $0.272 and $0.297 could provide additional support, aligning with the 50-day EMA on the 4-hour chart, which may further support a price recovery.
As Dogecoin continues to capture market interest with its unique chart pattern and significant backing from notable public figures, traders and investors are watching closely for potential moves that could propel the memecoin to new highs.
