Pattern That Led To Dogecoin Price 36,000% Surge In 2021 Has Emerged Again, Will History Repeat?
Dogecoin just endured a sharp weekend drawdown, slipping again under the $0.20s after failing to increase its early October rebound. This decline was sufficient to wipe out many weeks of regular features and shake retail sentiment. However, amid the volatility, the month-to-month chart continues to be bullish. Despite the weekend crash, Dogecoin is properly above its 25-month transferring common and is buying and selling close to the identical structural zone that preceded previous parabolic rallies.
This setup caught the eye of a technical analyst on X referred to as EᴛʜᴇʀNᴀꜱʏᴏɴᴀL, who identified that the identical sample that preceded Dogecoin’s 36,000% breakout in 2021 has now resurfaced.
Historical Structure Reappears On Dogecoin’s Chart
According to the analyst’s long-term monthly chart, Dogecoin has repeatedly entered explosive bull runs after exhibiting three main technical circumstances: a breakout from a protracted falling development, sustained buying and selling above the 25MA, and a profitable retest part that confirms structural power. Each of those setups has led to large worth expansions, most notably the 36,000% surge that catapulted DOGE from fractions of a cent to its May 2021 all-time high of $0.7316.
As proven within the chart under, the identical technical conditions are playing out again. The falling trendline that had capped Dogecoin’s development since mid-2021 has already been damaged, and the value is properly positioned above the 25MA. The ongoing consolidation is representing the retest part, the identical interval that preceded the final two main parabolic runs in 2017 and 2021.
Another necessary remark highlighted by the analyst is that every historic breakout was preceded by what’s known as the NGMI (Not Gonna Make It) part. This is often when Dogecoin is buying and selling sideways or dipping barely after breaking out of its multi-month falling trendline.
Will History Repeat For DOGE?
As it stands, Dogecoin’s month-to-month worth sample is now again to buying and selling round this downward trendline, which it broke above in late 2024. The newest candlestick wick, which was created with Dogecoin’s current fall to $0.18, noticed it touching this trendline once more very briefly.
However, if Dogecoin’s recurring structural sample continues to play out because it has earlier than, the present downtrend part may precede another strong rally. The technical alignment, a mix of worth stability above the 25MA, the breakout from a long-term downtrend, and the retest affirmation, signifies that momentum continues to be quietly constructing beneath the floor.
Although no chart can assure a repetition of the 2021 magnitude, EᴛʜᴇʀNᴀꜱʏᴏɴᴀL’s technical outlook provides a compelling argument that Dogecoin’s bigger bullish cycle continues to be intact.
At the time of writing, Dogecoin is buying and selling at $0.201, down by 5.2% and 23% previously 24 hours and 7 days, respectively.