Analysis: History Shows Why Dogecoin Rally is Around the Corner

Dogecoin (DOGE) is again drawing attention with its recent price fluctuations. A recent tweet analyzing its historical trends suggests that the original memecoin may be preparing for another major surge.

In 2017, when #Dogecoin began a parabolic run, it surged 212%, retraced 40%, then rallied 5,000%. In 2021, it went up 476%, retraced 56%, then skyrocketed 12,000%.

Now, in 2024, $DOGE is up 440% and has retraced by 46%. If history repeats, another parabolic rally is on the way! pic.twitter.com/uhf2kMc0Id

— Ali (@ali_charts) December 23, 2024

DOGE’s Historical Pattern

In the tweet, market analyst Ali Martinez highlighted Dogecoin’s pattern of parabolic rallies in previous bull markets. In 2017, the token saw a 212% increase, followed by a 40% pullback, before skyrocketing by 5,000%.

Similarly, in 2021, the token initially surged by 476%, experienced a 56% correction, and achieved a significant 12,000% rally. These significant price movements have cemented Dogecoin’s reputation for extreme volatility, driven by community excitement and broader market dynamics.

In 2024, DOGE had already shown similar behavior. After rising 440%, the token faced a 46% retracement, echoing its past performance and leading to speculation that another parabolic rise could occur if the historical trend continues.

DOGE Poised for Bullish Breakout?

Over the past two weeks, DOGE’s price has entered a corrective phase. After reaching a multi-year peak of $0.475 on December 8, it retraced by as much as 43%, hitting a low of $0.267 on December 20. The token is now trading around $0.31, reflecting a period of consolidation after its sharp drop.

Despite the recent correction, crypto analyst Trader Tardigrade’s technical analysis suggests that Dogecoin is building momentum for a potential bullish breakout. The analyst highlighted the formation of an ascending channel on the monthly candlestick chart, which could be crucial in shaping DOGE’s trajectory heading into 2025.

Interestingly, Trader Tardigrade pointed out a similar pattern in late 2020, which preceded Dogecoin’s massive rally in 2021. Drawing from this precedent, the analyst predicts that DOGE could break out of the ascending channel in early 2025, potentially delivering a significant upward move. This analysis echoes the view of Ali Martinez, who has also highlighted comparable bullish patterns.

The bullish outlook aligns with growing anticipation around Elon Musk’s upcoming role as the head of the Department of Government Efficiency (DOGE) in January 2025. As a long-time supporter of Dogecoin, Musk’s influence through public endorsements and social media activity could act as a catalyst, boosting the potential for a rally in the months ahead.