While this term may suggest stagnation, historical trends indicate that it is not necessarily bad news, but a potential precursor to an explosive price rally.
Cryptocurrency enthusiasts keeping a close eye on the Dogecoin price will be interested to know that analysts are describing the current price action as a “Boring phase.” While this term may conjure up images of stagnation, a closer examination of historical trends reveals that it could be a precursor to an explosive price rally. If history repeats itself, we could see DOGE skyrocketing past the $1 threshold.
A recent analysis on X (formerly Twitter) by Trader Tardigrade highlights that the Dogecoin price action is mirroring a pattern observed in late 2017. Based on the analyst's report, Dogecoin has officially entered a ”Boring Phase” — a crucial stage in the meme coin's trajectory where it typically shakes out weak hands and builds up momentum for a potential rally.
The analysis, which includes a detailed Dogecoin chart, reveals that the new boring phase shows the meme coin in consolidation, marked by tight price movements. In the 2017 bull cycle, Dogecoin followed a similar boring phase trajectory, making an initial upward move before entering a period of sideways trading between October and November.
During this time, much of the market interest in Dogecoin had waned, with the price remaining relatively low and showing no signs of a bullish momentum. However, by December, DOGE skyrocketed in value, aligning with the broader crypto bull market. During its decline, the meme coin had fallen as low as $0.001 before experiencing an explosive rally to over $0.014, marking a 1,300% increase.
If history were to repeat itself, like Trader Tardigrade suggests, Dogecoin may be setting up for a similarly huge breakout after its boring phase. The analyst suggests that the expected price rally could begin around late February and March, potentially catapulting the value of DOGE above $1.3. This would reflect a 420% surge from its current market value.
While some investors and traders may find a prolonged Dogecoin consolidation phase frustrating, long term holders and analysts typically view it as a healthy occurrence in a cryptocurrency's cycle. The boring phase may open up opportunities for accumulation, and price stabilization, as long-term investors aim to take advantage of the low volatility before the next price rally.
In other news, the Dogecoin price has formed a Symmetrical Triangle and appears to be on the verge of breaking out of the technical pattern. Ali Martinez, a prominent crypto analyst on X has identified this new movement, projecting that the meme coin could soon initiate a 25% breakout move.
As with most symmetrical triangle breakouts, if DOGE can break above the pattern, it could trigger a potential surge to new price highs. However, broader market volatility and instability makes this analysis uncertain. Nevertheless, the Dogecoin price has remained resilient, currently trading at $0.25 after experiencing a decline of more than 30% in the past month.
