Dogecoin (DOGE) has shown a weekly gain of 1.68%, keeping it in a positive trajectory despite the bearish market sentiment. Analysts are optimistic about its continued upward trend, supported by historical price patterns. A recent chart from TradingShot suggests that Dogecoin might be mirroring past price behaviors, hinting at a potential rise.
What Does DOGE’s History Reveal?
Examining Dogecoin’s price history from 2014 to 2017 reveals a dramatic decline of 96.26%, hitting a low of $0.002198. This phase was followed by a lengthy consolidation period lasting about 1,050 days. Subsequently, from 2017 to 2018, Dogecoin experienced a rally, only to see another significant decline by 92.96% between 2018 and 2019, causing investor concerns. This cyclical pattern suggests that Dogecoin might be entering another accumulation phase similar to past events.
Since 2020, Dogecoin seems to be in a new phase of accumulation. Historical trends indicate that this phase could precede a breakout, reflecting past cycles of decline, consolidation, and eventual rally.
Where is DOGE Headed Next?
The current Dogecoin chart indicates a first support level between $0.07 and $0.08, sustained by the 1-week moving average line. This level has historically been significant during accumulation phases, suggesting potential for a breakout. The deeper support level around $0.002198 also aligns with past critical levels.
For resistance, the 0.236 Fibonacci retracement level at $0.20 is crucial. Breaching this point is essential for upward momentum. The 0.618 Fibonacci level at around $2 remains a distant target, considered overly optimistic at present.
Key Takeaways for Investors
– Historical patterns suggest Dogecoin is in an accumulation phase.
– Key support lies between $0.07 and $0.08.
– Significant resistance is at the 0.236 Fibonacci level, around $0.20.
– Long-term resistance at the 0.618 Fibonacci level, near $2, is optimistic.
In conclusion, Dogecoin’s price movements seem to echo past cycles of decline and consolidation, hinting at potential growth. Investors should watch for key support and resistance levels to gauge future movements.