Originally published on: December 13, 2024
Dogecoin is teasing a familiar pattern that could signal an 85% surge in price, reminiscent of its historic 8,000% rally in 2021. The crypto community is abuzz with speculation about another breakout on the horizon.
After bouncing back 480% from its August lows, including a significant 220% spike post-Donald Trump’s election win, Dogecoin is now in a consolidation phase. The chart shows DOGE trading between $0.39 and $0.48, echoing a similar period of sideways movement seen before the explosive rally in early 2021.
Interestingly, the weekly relative strength index (RSI) is flashing an overbought signal, pointing to a potential correction or extended consolidation. In 2021, this overbought condition paved the way for a bullish continuation rather than a steep decline.
If history repeats itself, Dogecoin could set its sights on $0.75 by January 2025, marking an 85% price surge based on Fibonacci retracement projections.
Onchain data adds weight to this optimistic outlook. Whale addresses holding 1 million DOGE or more now boast a record 130.2 billion DOGE, indicating a growing belief among large investors in Dogecoin’s upward trajectory. This uptick in whale holdings was a precursor to the 2021 rally, where the count surged from 110.3 billion to as high as 112.5 billion.
Elon Musk’s undeniable influence remains a strong driving force behind Dogecoin’s performance, with his tweets shaping market sentiment and fueling demand among whales. Most recently, the launch of the Department of Government Efficiency (DOGE) has rekindled speculative interest in the meme coin, aligning with Dogecoin’s ticker symbol, DOGE.
As always, this article does not provide investment advice. Readers are encouraged to conduct their own research and due diligence before making any financial decisions. Stay informed and seize the opportunity with critical insights delivered to your inbox every Monday by subscribing to the Markets Outlook newsletter.
