Author: Biraajmaan Tamuly, CoinTelegraph; Translated by: Baishui, Golden Finance
Dogecoin was one of the best performing currencies in November, with its gains accelerating after President-elect Donald Trump won the U.S. election. Over the past 30 days, Dogecoin has risen 229%.
Top performing crypto assets over 30 days. Source: CoinGecko
The memecoin’s market structure has seen a significant shift at $0.37, which was previously seen in October 2021. If DOGE repeats its historical pattern, its price cap could be much higher after a significant shift in the short term.
DOGE presents a “classic” inverted head and shoulders pattern
Veteran trader Peter Brandt has frequently analyzed Doge’s price action over the past few weeks. In a recent X post, the trader claimed that DOGE exhibits “excellent charting markets that follow classic charting principles.”
Peter Brandt's analysis of Dogecoin's 1-week chart. Source: X.com
Brandt explained that Dogecoin also exhibited a similar sideways accumulation range in 2020 before forming an inverted head and shoulders (H&S) pattern. In 2024, Dogecoin’s weekly chart also followed the same path and a bullish breakout from the current inverted H&S pattern led to a 190% increase in its price.
Mikybull's analysis of Dogecoin's 1-week chart. Source: X.com
Meanwhile, economist and cryptocurrency trader Mikybull continues to explore the potential “meaning” of the golden cross prevailing on Dogecoin’s weekly chart. Although Dogecoin has gained nearly 7,000% in 2021, based on the law of diminishing returns, traders expect the memecoin’s market peak to be around $3 to $4, or 1,136%.
Dogecoin has retested $0.39
On December 12, the price of Dogecoin reached a high of $0.44 but immediately saw a 22% correction to $0.34 on the next four-hour chart. Since then, the memecoin’s momentum has slowed down, fluctuating between $0.44 and $0.34.
However, after Donald Trump officially announced that Elon Musk and Vivek Ramaswamy would head the Department of Government Efficiency (D.O.G.E) (the department has the same acronym as memecoin), the market expected a bullish reaction.
Jacob Canfield, a cryptocurrency trader, believes the lack of reaction could “signal a period of broader selling.”
From a technical perspective, the immediate area of interest for Dogecoin is between $0.30 and $0.326 (green box), where a fair value gap (FVG) has formed on the 1-day chart.
Dogecoin 4-hour chart. Source: TradingView
Below the $0.30 level, an order block has emerged between $0.272 and $0.297 (yellow box) on the 4-hour chart. This order block is converging with the 50-day moving average level, which could provide additional support for price recovery.
