Can Dogecoin be imitating the 2020 fractal that caused the price of DOGE to skyrocket by 15,800%?

Written by Rock Buivy

Post Date: 27 Mar, 24

Elon Musk’s influence, the impending halving of Bitcoin, and anticipation of interest rate decreases all lend credence to DOGE’s bullish fractal.

The current price behaviour of Dogecoin is similar to 2020 fractals, wherein the cryptocurrency had a price explosion of over 15,800% in just six months, reaching a record high of $0.76.

2024 Dogecoin Price Trend Compared to 2021

The parallels between DOGE’s current price behaviour and those recorded following the end of the 2018 – 2020 bear market are evident in the Dogecoin chart fractal below.

For example, Dogecoin went through a protracted sideways fluctuation between $0.0012 and $0.0056 between 2018 and 2020.

This phase, which took place between the 0.0 and 0.236 Fibonacci retracement lines on the chart, was a time of moderate volatility and relative market equilibrium.

Dogecoin has resumed its consolidation phase, mirroring the previous pattern, albeit at a greater price range of $0.055 to $0.181.

It’s interesting to note that these new limits coincide with the 0.0 and 0.236 Fib retracement periods, respectively.

The present effort to break above the 0.236 Fibonacci threshold is similar to the breakout seen in the last cycle, and if the price manages to stay above this level, which is currently at $0.181, it could signal a substantial change in market mood.

Dogecoin basics: 2020 versus 2024

The fundamentals, such quantitative easing, were a major factor in the 2020 increase in Dogecoin prices, which reached over 15,800%. It’s interesting to note that comparable factors are attempting to push the memecoin market beyond its resistance level of the 0.236 Fib line in 2024.

Potential rate reductions in 2024

The U.S. Federal Reserve’s stance of decreasing interest rates led to more cash availability, which in turn drove Dogecoin’s price to rise over its 0.236 Fibonacci threshold in 2020.

Similarly, Dogecoin’s present attempts to break through the Fibonacci threshold of 0.236 align with expectations of three possible reductions in interest rates in 2024.

After the halving of Bitcoin, altcoin boom

The price movements of Dogecoin in 2024 bear greater resemblance to the 2020 fractal because of the Bitcoin halving events, which reduce the incentive for mining new blocks by half.

Surprisingly, Dogecoin’s price increased by an incredible 34,300% on July 11, 2020, the day after Bitcoin’s third halving.

In a similar vein, Dogecoin had a surge of more than 6,350% following Bitcoin’s second halving, demonstrating its capacity to provide substantial profits to investors looking for chances in alternative cryptocurrencies following halvings.

“Dogecoin’s trajectory in 2024 mirrors its historic leaps, echoing the influence of Bitcoin’s halving events. With the fourth halving on the horizon, its potential for exponential growth remains tantalizingly evident.”

The fourth halving of Bitcoin is scheduled for April 19 – 20. If past performance is any guide, Dogecoin's value could skyrocket after that.

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Elon Musk’s comeback

Dogecoin saw huge price increases in 2020 and 2021 as a result of Elon Musk’s vocal and active backing, which also helped it rise to the top of the cryptocurrency market. The wealthy businessman is now considering an attempt to incorporate DOGE into well-known platforms in 2024.

For example, Musk stated on March 14 that DOGE payments for automobile purchases may be added in the future by his electric vehicle company, Tesla.

Additionally, Musk’s “everything app,” X (formerly Twitter), created an XPayments account in preparation for its upcoming payment features. It is increasingly anticipated that by mid-2024, the X app will support in-app purchases using cryptocurrency such as Dogecoin.

Technical analysis of Dogecoin

Technically speaking, Dogecoin may enter a correction or consolidation phase in April as its weekly relative strength index (RSI) has gone over 70, an overbought zone.

However, by the end of April, DOGE’s price may move towards the 0.382 Fib line, or roughly $0.26, if there is a clear breakout above the 0.236 Fib resistance. That is a 35% increase above the current pricing levels.

On the other hand, a significant decline from the 0.236 Fib line may push Dogecoin’s price down 48% from present levels and towards its 50-week exponential moving average (50-week EMA; the red wave) at roughly $0.095.

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