Dogecoin has cleared the $0.4 mark again After a few days of interesting price flow that has seen its price bounce back significantly from $0.31. This strong upward movement has allowed Dogecoin to reverse the price losses incurred in the past week.
Related reading
Additionally, this recent rally has put Dogecoin back on track for further upward momentum, and the outlook for the future is Price targets to expect In the case of the ongoing rally.
A technical analysis on the TradingView platform revealed an impressive comparison between Dogecoin’s current price movement and its historical patterns to predict a significant rally that could bring Dogecoin to $3 this cycle.
Dogecoin’s consolidation points to a January 2021 rally
The Technical analysis in question Looks at Dogecoin’s price action from a long-term perspective by analyzing formations on weekly candlesticks. Interestingly, the weekly candles show that Dogecoin has been consolidating below the $0.5 price level and in upward momentum over the past six weeks.
The analyst highlighted that Dogecoin’s recent consolidation is almost an exact replica of the similar behavior above the 1-week moving average (MA50) in January 2021. This symmetric position in time compared to the previous market cycle adds credibility to the argument that Dogecoin is following. A cyclical pattern, which has been proposed by various analysts through various technical analyses.
Back in 2021, the cryptocurrency transitioned from a period of stagnation to explosive growth, generating returns of over 3,600% from its bottom.
Expanding on this cyclical pattern, the analyst highlighted another similarity in Dogecoin’s price rally in Q4 2024. The price of Dogecoin has increased by almost 480%. From its August 2024 low, A figure that matches the 480% growth seen during the November-December 2020 period.
After that initial Phase 1 surge in 2020, Dogecoin entered a consolidation phase in January 2021 before beginning Phase 2 of its rally. The current consolidation, therefore, appears to reflect this historical sequence and gives voice to a prediction that Dogecoin On the verge of repeating his previous performance.
Phase 2 Goal: Path to $3
Based on historical precedent, analysts estimate that Dogecoin’s “Phase 2” could bring a 3,600% rally, similar to the cycle seen in early 2021. As a price target, the estimate is 3,600% growth from August 2024. is lower, which will bring Dogecoin to the $3 mark. The timeframe for this price target is the start of the next three weeks, although the analyst noted that it could be much later than that.
Related reading
At the time of writing, Trading on Dogecoin $0.3947, although it recently traded at an intraday high of $0.4334. A move in $3 represents a 777% increase from the current price.
Featured images from VOI, charts from TradingView
