Dogecoin ($DOGE) Mimics Historical Patterns, May Be Primed to Erupt Beyond ATH: Analysts

Dogecoin ($DOGE) has drawn attention with its historical price patterns. Analysts believe the coin may be gearing up for a significant breakout

Dogecoin ($DOGE) has captured the attention of crypto enthusiasts with its intriguing historical price patterns. Analysts are now speculating that the coin may be poised for a significant breakout, potentially pushing it to new highs beyond its previous all-time high (ATH).

Dogecoin has exhibited three distinct cycles since 2014, according to technical analysis by crypto analyst Javon Marks. The first two cycles were marked by extended periods of consolidation followed by explosive price movements.

After breaking its ATH during the previous cycles, Dogecoin experienced exponential growth, recording over 8x returns. Marks suggests that if this pattern continues, Dogecoin could reach $2.28 in the long term.

Dogecoin has been consolidating within a range for the past seven months, and as it approaches the upper end of this range, Marks anticipates a bullish breakout.

Despite experiencing short-term pullbacks, such as a minor correction to $0.38, Dogecoin has shown resilience and is still trading up, according to Marks.

The coin’s recent price activity has also seen support from the "Dogecoin Millionaires Club," which comprises early investors who became millionaires thanks to the cryptocurrency.

Dogecoin network activity has seen a substantial increase recently, with transactions exceeding $1 million reaching 588 in the past 24 hours, according to data shared by crypto analyst Ali (@ali_charts).

This rise in high-value transactions on the Dogecoin network indicates growing interest among larger investors in the cryptocurrency's price movements.

In the futures market, open interest (OI) in Dogecoin has also risen significantly. Data from Coinglass shows that DOGE futures OI remained relatively low, between $0.5B–$1B, through mid-2023.

However, by December 2023, OI surged past $6B, coinciding with the period of strong price appreciation.

Analysts have noted that rising OI without corresponding price movements may indicate market over-leverage, which could lead to liquidations in case of price declines.

At press time, Dogecoin was trading at $0.3409, with a 24-hour trading volume of $7.08 billion. The coin had dropped 6.53% in the past day, but it maintained a market cap of $50.54 billion.

Volume in the Dogecoin market decreased by 17.35% to $12.13 billion, while open interest in futures contracts dropped by 10.78%, standing at $4.60 billion.

Notably, options open interest increased by 5.57% to $1.62 million, suggesting continued interest in the derivatives market.

Dogecoin’s historical patterns and growing network activity continue to keep the cryptocurrency in focus, with analysts closely watching its price movements.

Here are some frequently asked questions (FAQs) about Dogecoin:

Dogecoin's ATH is $0.73905.

Some analysts predict Dogecoin could reach $2.28 or even surpass $5.

Over 588 transactions worth $1M+ occurred on the Dogecoin network in 24 hours.