Is Dogecoin recording the 2020 fractal of DOGE price rising 15,800%?
Dogecoin (DOGE)'s ongoing price action mirrors 2020 fractals as the price exploded over 15,800% to a record high of $0.76 in six months.
Dogecoin price trend in 2024 vs 2021
The Dogecoin chart fractal below highlights the similarities between DOGE's ongoing price performance and that recorded since the end of the 2018-2020 bear market.
For example, in 2018-2020, Dogecoin experienced an extended sideways movement in the range of $0.0012 to $0.0056. This level occurred between the 0.236 and 0.0 Fibonacci retracement lines at the fundamental levels of the chart, indicating a period of low volatility relative to the market balance.
Reflecting the previous consolidation pattern, Dogecoin – again – entered a consolidation phase, but with a higher price range between $0.055 and $0.181. Interestingly, these new limits also coincide with the 0.236 and 0.0 Fib retracement levels.
The current attempt to break through the 0.236 Fibonacci level is similar to the breakdown seen in the previous cycle, if the price stays above this level, it could indicate a significant change in the market sentiment at $0.181 at the moment.
Dogecoin Basics 2020 vs. 2024
Fundamentals such as quantitative easing played a key role in sending Dogecoin's price over 15,800% in 2020. Interestingly, memecoin is seeing similar indicators as the market tries to break above the 0.236 Fib line resistance in 2024.
Level will reduce capacity in 2024
In the year In 2020, the price of Dogecoin exceeded the 0.236 Fibonacci level, boosted in part by the US Federal Reserve's policy of lowering interest rates.
Similarly, Dogecoin's efforts to break the 0.236 Fibonacci retracement line coincide with expectations of three interest rate cuts in 2024.
Altcoin rose after Bitcoin halved
Dogecoin's 2024 price trends are more similar to the 2020 fractal due to Bitcoin's halving, events that halve the reward for mining new blocks.
Remarkably, on July 11, 2020, following Bitcoin's third halving, Dogecoin's price increased by an astounding 34,300 percent.
Similarly, after Bitcoin's second half, Dogecoin experienced a rally of more than 6,350%, indicating its potential to deliver high returns to investors looking for opportunities in alternative cryptocurrencies after the decline.
Related: Bitcoin Halving Announcement: How Retail Investors Can Prepare
Bitcoin's fourth halving will be around April 19-20, after which Dogecoin's price may explode if history is any indication.
The return of Elon Musk
In 2020 and 2021, Elon Musk's active and public support of Dogecoin played a significant role in its dramatic price increase, which elevated it among the leading cryptocurrencies. Now, in 2024, the billionaire entrepreneur is eyeing a move to integrate DOGE with major platforms.
For example, on March 14, Mook said that his electric vehicle company, Tesla, may increase DOGE fees for the purchase of cars at some point in the future.
In addition, Musk's “everything app” X (formerly known as Twitter) has set up an XPayments account for its upcoming payments functionality. The X app is expected to roll out in-app payment capabilities by mid-2024, which could include cryptocurrencies like Dogecoin.
Dogecoin technical analysis
Technically, Dogecoin's weekly Relative Strength Index (RSI) has crossed above 70, an overbought zone, raising the possibility of entering a correction or consolidation phase in April.
However, a clear breakout above the 0.236 Fib resistance could send the DOGE price towards the 0.382 Fib line around $0.26 by the end of April. This is about 35% higher than the current price level.
Conversely, a critical retracement from the 0.236 Fib line could bring Dogecoin's price back to its 50-week exponential moving average (50-week EMA, red wave) around $0.095, which is about 48% down from its current price.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
