DOGE surged 440% and retraced 46% in 2024; if history repeats, a parabolic rally is possible.
Around $250M in short liquidations at $0.3567; DOGE could rally if the price liquidates.
Technical indicators like MACD indicate a short-term bearish trend for Dogecoin.
DOGE’s retracement could likely be a signal for a massive price rise. For the past week, the price of DOGE has declined by 21.87%, and in the past day, it has dropped by 0.75%, reaching a price of $0.314 at press time. Crypto analyst Ali Martinez, in an X post, pointed out that DOGE has gone up by 440% to $0.39547 in 2024 and has retraced by 46% to $0.22201. He highlighted that if history repeats itself, DOGE is up for another parabolic rally, surging by 20.170% to $17.94.
In 2017, when #Dogecoin began a parabolic run, it surged 212%, retraced 40%, then rallied 5,000%. In 2021, it went up 476%, retraced 56%, then skyrocketed 12,000%.
Now, in 2024, $DOGE is up 440% and has retraced by 46%. If history repeats, another parabolic rally is on the way! pic.twitter.com/uhf2kMc0Id
— Ali (@ali_charts) December 23, 2024
According to the analyst, in 2017, Dogecoin had a parabolic run, soaring 212% to $0.00042, retracting 40% to $0.00025, and then rallying 5000% to approximately $0.03500. Similarly, in 2021, it experienced another parabolic run, increasing 476% to $0.01142, pulling back by 56% to $0.00781, and then skyrocketing 12,000% to nearly around $0.11000. Based on historical trends, there is a chance for another parabolic rally with the possibility of the price reaching around $20.
Based on the DOGE exchange liquidity map on Coinglass, on a 7-day timeframe, the amount of short liquidation leverage is greater than the long liquidation leverage. At the price of $0.3567, there are about $250.71M short liquidations, and at $0.2722, there are long liquidations of $205.25M. If the price of DOGE increases and breaks through the $0.3567, short liquidations worth about $250M will be liquidated. This will help Dogecoin increase its price as liquidations help increase the upward momentum.
On the Aggregated Orderbook Liquidity Delta, the total bid volume is larger than the ask volume. Bids amount to $9.78M, and Asks are at $8.24M. This indicates a strong demand for Dogecoin at current price levels, potentially indicating a bullish run as the buyers outnumber the sellers.
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At the time of writing, Dogecoin is trading at $0.3181, with a market cap of $46.85B and a 24-hour volume of $4.11B. The RSI value of DOGE is 36.42, which indicates a neutral momentum, and the MACD points to a bearish trend. Although the technical indicators suggest a bearish outlook in the short term, this is temporary, as the price of the coin could increase drastically with the recovery of the market.
Although DOGE is experiencing a short-term bearish trend, historical patterns, and liquidity indicators suggest a potential for price increase. With the increasing demand for Dogecoin at current prices and the potential for short liquidations adding upward momentum, the coin could see a powerful rally in the future.
The post DOGE’s Parabolic Rally Potential: Will History Repeat? appeared first on CryptoTale.
