Dogecoin’s recent rally is holding strong amidst a wider wave of inflows into the crypto market. In the past two weeks or so, Dogecoin has moved steadily from below $0.13 toward the $0.22 to $0.24 region, and the current outlook is a daily close above $0.25 to continue an upside move.
As the Dogecoin price continues to battle it out in the shorter timeframes, an interesting technical analysis suggests that the meme coin is already laying the groundwork for a much larger 30,000% breakout in the larger timeframe.
Trader Tardigrade Highlights Repeating DOGE/BTC Pattern
According to a recent analysis by Trader Tardigrade on social media platform X, Dogecoin is currently playing out the same chart structure that preceded its extraordinary 30,000% rally in 2021. His analysis draws direct comparisons between the current DOGE/BTC on the 2W candlestick timeframe chart and its behavior in late 2020.
On the two-week timeframe, the DOGE/BTC ratio is forming what appears to be a rounded base pattern, just like the accumulation phase witnessed before the move that took the Dogecoin price from roughly $0.0024 to an all-time high of $0.739 in 2021.
The chart shared by the analyst emphasizes this comparison by showing that both cycles began with a long period of suppression in the DOGE/BTC ratio, followed by a sudden breakdown during a surge in the price of BTC, which eventually flipped into a Dogecoin rally once Bitcoin’s price started to consolidate. The red arrows shown in the chart below indicate the support levels during the formation of this base. Finally, the analyst highlighted on the chart a new breakout phase that could repeat the one that preceded the 2021 bull run.
What To Expect From Dogecoin If History Repeats Itself
Trader Tardigrade’s analysis boils down to a sequence of three-phase events to watch. First, Bitcoin will undergo an upward move that will temporarily push the DOGE/BTC ratio downward as capital flows into the leading cryptocurrency. This has played out from the last 2021 high up until Q4 2023. The second phase involves Bitcoin entering a sideways trading zone, giving altcoins like Dogecoin room to outperform and decline in back and forth movements, which is the current range.
The final and most explosive phase, according to the analyst, will be characterized by an independent 30,000% Dogecoin rally over several weeks, as it did in early 2021. With this in mind, the analyst projected on the chart a move to over 240,000 on the Dogecoin/Bitcoin pair.
However, at the time of writing, Dogecoin is trading at $0.235. A 30,000% increase from the current price translates to a price target around $70.
Featured image from Getty Images, chart from Tradingview.com
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