A cryptocurrency expert has identified a familiar pattern on the Dogecoin (DOGE) price chart that led to its remarkable price surge in 2020. During that time, the price of DOGE skyrocketed by over 26,000%, turning early investors into millionaires within a short period. Now, with the current chart structure mimicking the same pattern, the analyst suggests that Dogecoin might be gearing up for another historic rally, potentially reaching a $2 price target.
Dogecoin Price Resembles Historic 2021 Bull Run Pattern
In a recent analysis of Dogecoin on X, market analyst Crypto Patel pointed out that DOGE is currently located within the same strong accumulation zone from 2021 that propelled its price to an all-time high. This zone is marked at around $0.10, with Dogecoin trading around this level before surging over 26,834% to $0.74 in the previous bull market.
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Crypto Patel highlighted that Elon Musk’s tweets from SpaceX and Tesla played a significant role in driving the meme coin’s price upwards during that period. With renewed attention on Dogecoin, the analyst believes that the fractal pattern from the previous bull market is repeating in this cycle.
The bull market between 2020 and 2022 progressed through Waves 1 to 5, with notable price fluctuations before reaching its peak in the final wave. According to Crypto Patel’s chart, Dogecoin saw breakthroughs in Waves 1 and 2, followed by continued price increases in Waves 3, 4, and 5 before entering a bearish downtrend.
In the current cycle, Crypto Patel’s chart indicates that the market is replicating the same movements. Around 2024, Dogecoin experienced two breakthroughs similar to those in the previous cycle. After the second breakthrough, the price retested previous lows before embarking on a strong rally, marking Wave 3.
Based on Crypto Patel’s analysis, the market is currently in Wave 4 after facing significant volatility and price declines for months. If history repeats itself, the analyst predicts that Dogecoin could witness another parabolic rally soon. His chart suggests an upper price target of around $2.0, signifying a more than 2,767% surge from the current accumulation zone between $0.07 and $0.10.
Dogecoin Whale Activity Rises Alongside Price
While analysts maintain their optimistic outlook on Dogecoin, the meme coin is also experiencing a surge in whale activity and price. Recent data reveals that whales are accumulating Dogecoin in large quantities.
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A crypto analyst, Mando CT, reported that whale wallets holding DOGE have reached a new all-time high of 108.52 billion tokens valued at approximately $11.6 billion. He observed that large-holder activity has also surged to its highest level in six months, indicating renewed interest and demand for the meme coin. CoinMarketCap data shows that the DOGE price has increased by over 3.4% in the last 24 hours, driven by Bitcoin’s recent reclamation of the $80,000 level.
Featured image from iStock, chart from Tradingview.com