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Dogecoin is mirroring the price movements of 2020 fractals, which saw an increase of over 15,800% in just six months, reaching a record level of $0.76. The similarities between DOGE‘s ongoing price performance and the post-2018-2020 bear market recovery are striking. Here are the noteworthy details.
Noteworthy Details on Dogecoin
Between 2018 and 2020, Dogecoin experienced a prolonged sideways movement ranging from $0.0012 to $0.0056. This phase occurred between the 0.236 and 0.0 Fibonacci retracement lines on the chart, highlighting a period of low volatility and relative market balance.
Reflecting the previous consolidation pattern, Dogecoin has entered another consolidation phase but within a higher price range of $0.055 to $0.181. Interestingly, these new boundaries align with the 0.236 and 0.0 Fib retracement levels respectively.
The current attempt to surpass the 0.236 Fibonacci threshold resembles the breakout observed in the previous cycle, suggesting a significant shift in market sentiment if the price remains above this level, currently at $0.181.
What Factors Influence Dogecoin’s Price?
Several fundamental factors played a key role in Dogecoin’s price surge of over 15,800% in 2020. Interestingly, the memecoin market is witnessing similar factors in 2024 as it attempts to break above the 0.236 Fib line resistance. In 2020, Dogecoin’s price partly surpassed the 0.236 Fibonacci level due to increased cash liquidity resulting from the US Federal Reserve’s policy of lowering interest rates.
Similarly, Dogecoin’s current efforts to overcome the 0.236 Fibonacci threshold coincide with expectations of three potential interest rate cuts in 2024. Dogecoin’s price trends in 2024 show even more similarities to the 2020 fractal due to the Bitcoin halving event, which halves the reward for mining new blocks.
Following Bitcoin’s third halving event on July 11, 2020, Dogecoin’s price impressively surged by 34,300%.
Likewise, after Bitcoin’s second halving event, Dogecoin experienced a rally of over 6,350%, demonstrating the potential for high returns for investors seeking opportunities in alternative cryptocurrencies following halving events. Bitcoin’s fourth halving event is expected to occur around April 19-20, and if past is any indicator, Dogecoin’s price could rise following this event.
