Dogecoin price pattern, echoing its behavior before the massive 8,000% rally in 2021, is drawing attention. This has sparked speculation of another significant breakout. DOGE has surged 480% from its lows in August, including an astonishing 220% rally after the November election victory of Donald Trump. The market has now entered a consolidation phase.
Currently, DOGE is moving within the range between $0.39 and $0.48, which replicates its lateral movement after a parabolic move upward in early 2021. Given previous patterns, this quiet moment may precede a dramatic upward spike.
The weekly RSI also shows some similarities between the present and 2021. For one, it had climbed above 70 by December, showing overbought conditions. Similar RSI levels in 2021 did not trigger a retreat but instead powered further gains. If history were to repeat itself, DOGE might target $0.75 by Jan 2025, up about 85% from current levels.
Whale accumulation highlights growing confidence in Dogecoin
On-chain metrics look far more appealing and complement the bull case. For instance, whales holding more than 1 million DOGE currently hold 130.2 billion DOGE, which is the highest on record.
Indeed, this increase in whale holders indicates confidence in DOGE’s potential. Something similar happened in the 2021 rally- when the amount that whale holders were holding grew from 110.3 billion to 112.5 billion.
DOGE is finally in its consolidation phase after being followed closely by all market watchers. Recent updates place the period at anywhere between one to three weeks. Projections for reaching a new all-time high have also shifted since many are now expecting it toward the start of 2025, not toward the end.
Another reason could be what is called the “Trump Effect.” There have been rumors that Trump’s political moves could possibly boost the price of DOGE. If market trends are to be influenced by the U.S. election cycle, one would expect a price pump to coincide with major political events. This hypothesis gains momentum as investors position for what could be another historical rally of Dogecoin.
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