Dogecoin (DOGE) has caught the attention of traders as its latest chart patterns suggest another explosive rally is on the horizon.
Dogecoin is struggling to maintain its dominance above the $0.30 price level after falling 7.5% over the past week. However, analysts believe a turnaround is imminent.
In an article on X, trader Tardigrade shared his insights into the annual and weekly price movements of Dogecoin. He highlighted historical cycles and technical signals that point to a significant uptrend on the horizon.
The annual harmonic model
The annual chart revealed a striking harmonic pattern that divides Dogecoin’s market history into three distinct phases: the off years, the pre-pump years, and the pump years.
Notably, according to the analysis, Dogecoin’s lowest years were 2015, 2019, and 2023. These years mark the main troughs in the Dogecoin market, where prices reach the lowest point of the cycle before the start of a trajectory ascending.
Meanwhile, the years before pumping are 2016, 2020 and 2024. They have often been characterized by early signs of recovery and accumulation. These years paved the way for substantial rebounds. For example, Dogecoin saw a 5x increase between September and December.
Notably, pump years including 2017, 2021, and 2025 have historically seen huge bullish candles, propelling DOGE to new highs.
Based on this recurring pattern, Tardigrade estimates that 2024 served as the year of installation. He says this paves the way for a possible major breakthrough in 2025, which could mirror the explosive gains seen in 2017 and 2021.
Weekly chart signals bottom zone
In addition to the annual analysis, the weekly chart provides Encouraging signs for Dogecoin’s near-term prospects. Trader Tardigrade highlighted the appearance of a “Spinning Top” candlestick, a setup that typically signals market indecision and a potential reversal.
He noted that this is not the first time that Dogecoin has displayed this trend at critical times. He cited similar events in September and October, periods from which Dogecoin exploded before consolidating.
Essentially, the last observation further reinforces the idea of a background phase and that an uptrend is imminent.
Adding to the bullish outlook, the Relative Strength Index (RSI) on the weekly timeframe has reached a support level. Historically, RSI rebounds from such levels have been followed by significant upward price movements.
What’s next for Dogecoin?
As 2024 closes out as a potential down year and technical indicators align with historical trends, traders are eyeing 2025 as a defining year for DOGE. In particular, many expect Dogecoin to surpass $1 next year.
Trader Tardigrade is among the analysts forecasting a $4 trillion market cap for Dogecoin. For context, this bold perspective would result in a price over $30.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.