thecryptobasic.com
Dogecoin (DOGE) has been capturing the attention of traders as its latest chart patterns suggest another explosive rally is on the horizon.
Dogecoin is struggling to maintain dominance above the $0.30 price level after plummeting by 7.5% over the past week. However, analysts believe a turnaround is imminent.
In a post on X, trader Tardigrade shared insights into Dogecoin’s yearly and weekly price movements. He pointed to historical cycles and technical signals that hint at a significant bullish run on the horizon.
The Yearly Harmonic Pattern
The yearly chart reveals a striking harmonic pattern that divides Dogecoin’s market history into three distinct phases: Bottom Years, Pre-Pump Years, and Pump Years.
Notably, Dogecoin’s bottom years were 2015, 2019, and 2023, according to the analysis. These years mark Dogecoin’s major market bottoms, where prices reach the lowest point of the cycle before an upward trajectory begins.
Meanwhile, the pre-pump years are 2016, 2020, and 2024. These were often characterized by early signs of recovery and accumulation. These years set the stage for substantial rallies. For instance, Dogecoin registered a 5X surge between September and December.
Notably, the pump years, including 2017, 2021, and the incoming 2025, have historically seen massive bullish candles, propelling DOGE to new heights.
Based on this recurring pattern, Tardigrade believes 2024 has served as a setup year. According to him, it is paving the way for a potential major breakout in 2025, which could mirror the explosive gains witnessed in 2017 and 2021.
Weekly Chart Signals Bottoming Zone
In addition to the yearly analysis, the weekly chart provides encouraging signs for Dogecoin’s near-term prospects. Trader Tardigrade highlighted the appearance of a “Spinning Top” candlestick, a pattern that typically signals market indecision and a potential reversal.
He noted that this is not the first time Dogecoin has displayed this pattern at critical junctures. He cited similar occurrences in September and October, periods from which Dogecoin exploded before consolidating.
Essentially, the latest observation further reinforces the idea of a bottoming phase and that an uptrend is imminent.
Adding to the bullish outlook, the Relative Strength Index (RSI) on the weekly timeframe has reached a support level. Historically, RSI bounces from such levels have been followed by significant upward price movements.
What’s Next for Dogecoin?
With 2024 closing as a potential bottom year and technical indicators aligning with historical trends, traders are eyeing 2025 as a defining year for DOGE. In particular, many expect Dogecoin to break beyond $1 next year.
Trader Tardigrade is among the analysts forecasting a $4 trillion market cap for Dogecoin. For context, this bold outlook would translate to a price point exceeding $30.