Dogecoin follows ‘classical charting principle’ which hints at 1,000%+ DOGE rally

As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent Dogecoin (DOGE) surge has piqued my interest. Having navigated through countless market cycles, I’ve learned to appreciate patterns and trends that seem too good to be true often are.


In recent times, Dogecoin (DOGE) has been among the leading gainers in November, with its upward momentum increasing significantly following Donald Trump’s election as President of the United States. Over the last month, the value of DOGE has surged by a remarkable 229%.

The structure of the memecoin experienced a substantial change at around $0.37, similar to what happened back in October 2021. If history repeats itself, there’s potential for a significant increase in DOGE’s price ceiling in the short term, as it did before.

DOGE exhibits “classic” inverse head-and-shoulders pattern

Experienced trader Peter Brandt has often examined Dogecoin’s price trend in the last several weeks. In his latest blog post, he asserted that Dogecoin displays “exceptional market behavior consistent with traditional charting guidelines.

Brandt suggested that Dogecoin showed a comparable horizontal accumulation phase in the year 2020, followed by an upside-down head-and-shoulders (H&S) configuration. In 2024, Dogecoin’s weekly graph mirrored this pattern, and a bullish breakout from the current inverse H&S pattern triggered a 190% price surge for DOGE.

Meanwhile, Mikybull, an economist and cryptocurrency investor, was discussing the possible impact of a “golden cross” that appeared in Dogecoin’s weekly chart. As Dogecoin surged almost 7,000% during 2021, this trader predicted a potential peak price of around $3 to $4 for this meme-based coin, which represents an increase of approximately 1,136%. This prediction is based on the concept of diminishing returns.

Dogecoin may retest $0.30

On November 12th, Dogecoin’s price peaked at $0.44, but it quickly dropped by 22% to $0.34 over the next four hours on the chart. Since then, the momentum of this meme-based cryptocurrency has been relatively stable, fluctuating between $0.44 and $0.34.

Contrarily, the market was expecting a surge in optimism following Donald Trump’s announcement that Elon Musk and Vivek Ramaswamy would head the Department of Government Efficiency (D.O.G.E). Coincidentally, this department shares the same acronym as the popular memecoin.

According to crypto trader Jacob Canfield, the absence of response could potentially signal an extended period of selling off.

Looking at its technical aspects, the significant focus for Dogecoin right now is within the range of approximately $0.30 to $0.326 (represented by the green box). This is where a noticeable value gap, or Fair Value Gap (FVG), has appeared on the daily chart.

On the 4-hour chart, there’s a significant order block found between $0.272 and $0.297 (indicated by the yellow box). This block coincides with the 50-day Moving Average Line, potentially offering extra reinforcement for any price increase.

Read More

2024-11-13 19:12