Dogecoin’s 47% Pullback Sets Stage for A Mega DOGE Price Rally Ahead

The world’s largest meme coin, Dogecoin, has come under massive selling pressure recently dropping 17% over the last week and more than 33% over the last month. As of press time, the dogecoin (DOGE) price is trading 4.5% down at $0.1255 with a market cap of $18.09 billion. However, market analysts continue to be bullish on the meme coin, stating that it has weathered such huge corrections in the past as well.

Dogecoin Price Gearing Up For 1000% Rally?

Crypto analyst Ali Martinez highlights the recurring pattern in Dogecoin’s price behavior, suggesting that the current correction is typical before significant bull runs.

Martinez points out historical instances in 2017 and 2021 where the Dogecoin price experienced similar retracements before substantial price surges. In both cases, Dogecoin broke out of descending triangles, retraced by significant percentages (40% in 2017 and 56% in 2021), and then witnessed massive bull runs of 982% and 12,197%, respectively.

Martinez notes that in 2024, Dogecoin has once again broken out of a descending triangle and is undergoing a 47% price correction, resembling previous cycles, which could potentially precede the next Dogecoin bull run. On the other hand, there’s a rising Dogecoin whale interest to support the rally ahead.

This observation suggests a recurring pattern in Dogecoin’s price movements over the years, emphasizing the importance of patience for investors. If the DOGE price follows a similar trend as suggested by Martinez, we could see DOGE surging past $6.0 in the next crypto bull run.

Short-Term Price Action

Following a dip below $0.150, Dogecoin experienced continued declines, entering a short-term bearish trend akin to Bitcoin and Ethereum. The price fell below the crucial support zone at $0.1350, reaching a low of $0.1201 before stabilizing.

Although there was a slight recovery above $0.1250, gains were limited by resistance at $0.130. Currently trading below $0.1420 and the 100 simple moving average (4 hours), DOGE faces resistance near $0.130. The next significant barrier lies at $0.1350; failure to surpass this level could lead to further downward movement. Initial support is anticipated at $0.1220.

The subsequent significant support level is around $0.120. Should the price breach this support level to the downside, it may continue its descent. In such a scenario, the price could potentially drop towards the $0.1040 level.

In another development, there’s been a huge whale transfer for DOGE to the popular trading platform Robinhood. Popular handle Whale Alert has cited the transfer of 15 million DOGE tokens.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.