Is Dogecoin Gearing Up for a Significant Surge? Key Patterns to Watch

Dogecoin ($DOGE) has often been labeled as unexciting, and for the most part, this view holds some merit. As highlighted by Kaleo, Co-Founder, LedgArt_io, over its nearly decade-long existence, Dogecoin has predominantly trended sideways or downward. 

However, the cryptocurrency has experienced two significant surges, one with an approximate 6000% increase from its lows and another exceeding 30,000%. These rare but dramatic upswings highlight Dogecoin’s potential for explosive growth amidst long periods of stagnation.

Currently, Dogecoin is navigating through another extended period of sideways movement since its last all-time high (ATH). This trend mirrors its previous two extended sideways ranges before breaking out. 

Notably, each of those breakouts occurred approximately 8-9 months after a Bitcoin (BTC) halving. Given that the market is only two months past the most recent BTC halving, a significant breakout for Dogecoin might not materialize until December through February.

Considering historical patterns, it’s reasonable to anticipate a potential retracement to the 8-10 cents range. This would align with a similar trend observed in August 2020, several months before Dogecoin’s mainstream surge. 

During that period, Dogecoin experienced a 30% drawdown before embarking on its monumental rise. Hence, a temporary decline in the current bullish trend might be a precursor to a more substantial upward movement.

Reflecting on past cycles, it’s clear that patience is vital for Dogecoin investors. Despite eagerness to see Dogecoin align with other meme coins’ movements, understanding its historical trends is crucial. 

The meme coin supercycle remains a compelling narrative, with Dogecoin poised to reach the $1 – $2 mark eventually. However, this trajectory suggests a waiting period before a significant breakout occurs.

At press time, Dogecoin’s live price is $0.125595, with a 24-hour trading volume of $646,764,109. The coin has appreciated by 2.72% in the last 24 hours. 

The 1-day Relative Strength Index (RSI) for Dogecoin reads 47.64, indicating that the coin is neither overbought nor oversold. This neutrality suggests potential for a price increase in the near future. However, the 1-day Moving Average Convergence Divergence (MACD) trading below the signal line points to a potential bearish trend.