Dogecoin shows cyclical rallies with 2024 aligning with past trends in parabolic price surges
Key resistance at $0.41 while RSI signals overbought and MACD hints at slowing momentum
Lower trading volume down 40.49 percent contrasts with price recovery and growing market cap
Dogecoin ($DOGE) is once again testing the patience of its investors as it follows a pattern of cyclical bull rallies seen in previous years, such as 2017 and 2020. Recent price action reveals a brief correction following a technical "sell" signal, aligning with its historically parabolic trends.
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Utilizing a logarithmic price scale and a consistent ascending channel from 2017 to 2024, Dogecoin’s price activity indicates a repeating cycle of significant rallies followed by corrections, maintaining its position within this framework.
Historical Trends and Current Price Levels
Dogecoin's price surged dramatically during previous bull runs, marking gains of 9,363.78% in 2017 and 30,693.75% in 2021. These exponential increases were accompanied by technical indicators such as the TD Sequential "9" signal, often associated with trend exhaustion or impending corrections.
Source: X
In both instances, the price touched the upper boundary of its ascending channel, which acted as a consistent resistance level.
In late 2024, Dogecoin demonstrated a similar upward movement. The price currently stands at $0.414, reflecting a 2.96% daily increase despite a recent 6.59% dip in trading sessions. Market capitalization has grown to $60.85 billion, up by 2.97% in the past 24 hours.
Source: CoinMarketCap
However, the trading volume has decreased significantly, dropping 40.49% to $4.26 billion, signaling lower market activity despite the price recovery.
Technical Indicators Signal Momentum and Resistance
Dogecoin’s bullish momentum over recent months has brought it to multi-month highs. A key psychological resistance level lies at $0.41, which the cryptocurrency currently attempts to consolidate above. Short-term price action reveals a dip to $0.4023 within 24 hours, followed by a steady recovery.
Technical analysis shows mixed signals. The MACD indicator highlights a narrowing gap between the MACD and signal lines, suggesting a potential slowdown in bullish momentum. Simultaneously, the RSI stands at 73.44, indicating overbought conditions.
Source: TradingView
Looking Ahead: Consolidation or Continuation?
Dogecoin’s cyclical behavior within the ascending channel framework suggests the potential for further upward movement, contingent on market sentiment and broader cryptocurrency trends. With the volume-to-market-cap ratio at 7.01%, liquidity levels remain moderate, potentially supporting further price action if market conditions favor continuation.
Traders are closely monitoring resistance near the $0.45 region, which could determine whether Dogecoin continues its bullish trajectory or faces a retracement.
