Dogecoin (DOGE) Price Fractal That Preceded 30,700% Price Boom Flashes Again.
NOIDA (CoinChapter.com) — Dogecoin (DOGE) has steadily declined since Sept. 29, with its price slipping below $0.11 as of Oct. 3, 2024. The meme token, which has seen dramatic price swings in the past, currently faces bearish pressure.
Despite the recent downtrend, long-term holders might be eyeing a familiar bullish signal—one that’s been a precursor to major price rallies in previous cycles. Early signs suggest that DOGE could form a pattern typically leading to explosive upward moves.
Historical Fractal Hints at Potential DOGE Upswing
The recent consolidation in DOGE’s price echoes patterns seen in 2017 and 2020. In both instances, Dogecoin followed similar setups: an extended period of sideways trading before rallying sharply. As per the shared fractal chart, DOGE price exploded by 8,697% and 30,693% after similar consolidation phases.
Importantly, these surges did not happen overnight but followed long consolidation periods that yielded massive gains. The current setup indicates DOGE might be in a similar accumulation phase.
DOGE price could be forming a historical price fractal that preceded a massive rally. Source: Tradingview
Several bullish factors could assist Dogecoin’s price. For instance, Elon Musk’s known support for Donald Trump could indirectly benefit DOGE should Trump win the 2024 U.S. presidential elections.
As a vocal influencer, Musk has previously impacted DOGE’s price through his actions and tweets, and a favorable political outcome might reignite speculative buying interest in the token.
Although the billionaire’s influence on DOGE price has lessened recently, the US election results, dovish Federal Reserve, and other macro factors might be what the memecoin would need to start a rally.
While there is no guarantee that the DOGE price will fly upward immediately, the fractal signals and potential bullish external factors suggest that the Dogecoin price may be preparing for a significant move. However, traders should be aware that the timeline for such a rally could extend, just as it did in previous cycles.
DOGE Price Pattern Breakout Burns Out
Meanwhile, the recent downtrend extinguished the DOGE USD pair‘s breakout from a bullish technical setup called the ‘falling wedge.‘
The token broke out of the pattern towards the end of Sept. 2024, but the downtrend has brought DOGE price back to the pattern’s upper trendlines, which it is testing as support.
DOGE USD price has formed a bullish setup with a 90% upside target. Source: Tradingview
Two converging downward trendlines that connect lower highs and lower lows form the falling wedge, a bullish reversal. The narrowing structure shows that, despite the ongoing downtrend, the bearish momentum is gradually weakening, often preceding an upward breakout.
The key feature of a falling wedge is that the slope of the lower trendline is steeper than that of the upper trendline, indicating that selling pressure is dissipating. When the breakout occurs—typically upward—it signals buyers taking control.
To estimate the potential price target after a breakout, traders measure the vertical distance between the widest points of the wedge and project that range from the breakout point upwards. Increased trading volume during the breakout confirms the strength of the reversal, reinforcing market confidence and the likelihood of success.
According to technical analysis rules, the DOGE USD pair might have rallied over 90% from its current level to reach the pattern’s projected target of around $0.2. The token needs to consolidate and rebound, which could send Dogecoin price back toward the pattern’s price target.
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