Dogecoin: Copying 2020 Fractal for Soaring Price Surge?

The price action of Dogecoin is following a similar pattern to what we saw in 2020 when its price skyrocketed by over 15,800%. This pattern can be seen in the current price performance of Dogecoin, which resembles the period after the bear market of 2018-2020. During that time, Dogecoin experienced a sideways movement within a specific price range, indicating market equilibrium with low volatility. Similarly, Dogecoin is currently in a consolidation phase but at a higher price range. Breaking through certain Fibonacci threshold levels could indicate a significant shift in market sentiment.

In terms of fundamentals, the increase in Dogecoin prices in 2020 was influenced by factors such as quantitative easing. The same catalysts are now present in 2024 as Dogecoin tries to surpass its resistance levels. The anticipation of three potential interest rate cuts in 2024 aligns with the efforts of Dogecoin to breach the 0.236 Fibonacci threshold.

Another similarity between the 2024 and 2020 trends is the occurrence of Bitcoin halvings. After Bitcoin’s third halving in 2020, Dogecoin experienced a significant price surge. This demonstrates the potential for high returns in alternative cryptocurrencies after halvings. With Bitcoin’s fourth halving approaching, there is speculation that Dogecoin’s price may explode.

Elon Musk’s support has played a crucial role in driving up the price of Dogecoin in the past. In 2024, Musk is considering integrating Dogecoin into mainstream platforms, including the possibility of accepting DOGE as payment for Tesla cars. The forthcoming payment functionality of Musk’s “everything app” X may also include cryptocurrencies like Dogecoin.

From a technical analysis perspective, Dogecoin’s weekly RSI has entered the overbought zone, indicating a potential correction or consolidation phase in April. Breaking through the resistance levels could lead to a price increase towards the 0.382 Fib line. Failing to break through could result in a pullback towards the 50-week EMA.

Dogecoin’s current price action resembles patterns we saw in 2020, and various factors suggest the potential for future price increases. It is essential to consider technical indicators and market conditions when making investment decisions.