Dogecoin's 2021 Pattern Repeats, $5 Rally in Sight
Dogecoin price has been mirroring its 2021 pattern, sparking speculation about a potential rally towards $5. Analysts have identified a repetitive price action that could indicate an upcoming bullish trend, fueled by several positive triggers such as the potential launch of DOGE exchange-traded funds (ETFs) and Elon Musk's endorsement. However, the broader crypto market's uncertainty continues to pose a challenge to a possible recovery.
According to analyst Cas Abbe, Dogecoin price is currently in a recovery phase, with the potential to complete the third phase since 2016. If history repeats itself, the completion of this phase could precede a remarkable jump to $5. In 2021, Dogecoin experienced a parabolic rally after completing a similar recovery phase, surging 13x within three months. If Dogecoin were to repeat this pattern, the analyst anticipates a rally to $5 from today's price of $0.23.
Besides the price action, there are also similarities between the 2021 macro environment and the current one. Just like in 2021 when the market sentiment around DOGE was positive, data from Google Trends shows that search terms for "Dogecoin" in the US market have surged to the highest level in three weeks. As anticipation around a DOGE ETF builds, Dogecoin could record a massive rally in the coming months. However, while analysts have given a bullish Dogecoin price forecast of a rally to $5, this may not happen in 2025 given the current market conditions.
Dogecoin price has been trading within a horizontal range between $0.20 and $0.30 over the past month. However, sellers have gained the upper hand after the price tumbled by 5% in 24 hours. Traders are now closely watching the support level of $0.201, and if sellers force DOGE to fall below this price, it may lead to panic selling. However, the Relative Strength Index (RSI) shows Dogecoin is currently oversold, which could cause seller exhaustion. If DOGE defends support levels but buying activity continues to lack, it is expected that the price will continue trading in consolidation.
The bullish triggers around DOGE, such as the potential ETF approval and Elon Musk’s endorsement