Dogecoin’s price movement is drawing comparisons to its historic 2021 rally, during which it soared by an astonishing 8,000%. Current market activity suggests a similar breakout might be on the horizon, sparking excitement among traders and analysts alike.
Recent developments in whale activity and chart patterns have further fueled this optimism.
After hitting a low in August, Dogecoin’s price rebounded 480%, with a notable 220% surge after Donald Trump’s U.S. presidential election victory in November. Following this rally, the price entered a consolidation phase, where DOGE now trades within a tight range of $0.39 to $0.48. This movement mimics the 2021 trend, where a parabolic rise was followed by a period of sideways action, setting the stage for another breakout.
Dogecoin Follows 2021 Bull Run Patterns
A key similarity between the 2021 rally and current Dogecoin trends lies in the weekly relative strength index (RSI). On November 13, DOGE’s RSI climbed above 90, entering overbought territory. Historically, overbought conditions like these have not always led to downturns. In 2021, a similar RSI signal preceded a significant bullish continuation rather than a correction.
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DOGE Price Alert! Here’s Why Experts Are Predicting an Explosive 85% Surge
Kashif Saleem16 Dec 2024
Dogecoin’s price movement is drawing comparisons to its historic 2021 rally, during which it soared by an astonishing 8,000%. Current market activity suggests a similar breakout might be on the horizon, sparking excitement among traders and analysts alike.
Recent developments in whale activity and chart patterns have further fueled this optimism.
Source: Bitcoinwallah on TradingView
After hitting a low in August, Dogecoin’s price rebounded 480%, with a notable 220% surge after Donald Trump’s U.S. presidential election victory in November. Following this rally, the price entered a consolidation phase, where DOGE now trades within a tight range of $0.39 to $0.48. This movement mimics the 2021 trend, where a parabolic rise was followed by a period of sideways action, setting the stage for another breakout.
Dogecoin Follows 2021 Bull Run Patterns
A key similarity between the 2021 rally and current Dogecoin trends lies in the weekly relative strength index (RSI). On November 13, DOGE’s RSI climbed above 90, entering overbought territory. Historically, overbought conditions like these have not always led to downturns. In 2021, a similar RSI signal preceded a significant bullish continuation rather than a correction.
Source: TradingView
Technical projections point to a potential price target of $0.75 for Dogecoin by January 2025, representing an 85% increase from current levels. This forecast is based on Fibonacci retracement analysis, which previously proved effective in tracking DOGE’s price movements during past rallies.
On-chain data highlights a growing sense of confidence among large holders, often called “whales.” According to Messari, addresses holding at least 1 million DOGE now possess a record 130.2 billion DOGE. This surge in whale holdings echoes the 2021 rally, where whale addresses increased their holdings from 110.3 billion to 112.5 billion. The accumulation of large positions suggests that prominent investors are betting on future price growth.
Whale Purchases and Market Sentiment
Adding to the bullish sentiment, a recent X postby crypto expert Ali Martinez revealed that Dogecoin whales had purchased $160 million worth of DOGE within a 24-hour span. This surge in buying activity signals renewed interest among high-net-worth investors.
Santiment’s behavioral analysis further supports this outlook. The platform’s data shows a decline in the mean dollar invested age, indicating that previously dormant large wallets are becoming active. This shift suggests that long-term holders are moving their DOGE back into circulation, a sign often linked to changing market sentiment.
The reactivation of older wallets could point to renewed confidence in the token’s future performance. Analysts believe this change in investor behaviour aligns with Dogecoin’s historical pattern, where a similar shift preceded its explosive 2021 price rally.
Dogecoin’s price has experienced an 8.51% gain over the 24 hours, according to Brave New Coin’s DOGE Price Index. However, analysts argue that this consolidation phase mirrors the price action observed in 2021 before the cryptocurrency’s meteoric rise. If history repeats, Fibonacci retracement models suggest that DOGE could climb to as high as $0.75443 by January 2025, as noted by Martinez.
