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Historical models, while not predicting the future, are intriguing as they have repeated many times in the past. The price patterns we have seen in previous years do not necessarily have to repeat today. However, if this happens, we might see the start of the legendary Dogecoin rally in April. So, what do historical data tell us?
Dogecoin (DOGE) Cycle Chart
Does history repeat itself? In crypto, it has the potential to because many investors take positions by following these patterns, and we inevitably see periods when the chart takes such a shape. Sometimes, however, we see these historical patterns fail to work, surprising everyone.
The current chart reflects the patterns followed by the DOGE price in bull markets. In fact, there is also a cyclical appearance for DOGE here. Similar to Bitcoin halving charts but different. In December 2013, Dogecoin formed a falling wedge on the weekly chart. This was followed by a 679-day consolidation period and a surprising 8,773% bull market.
A similar formation also occurred between January 2018 and February 2019, and we saw an astonishing rally of 23,740%.
Dogecoin (DOGE) 2024 Target
Analysts say that a formation very similar to the one mentioned in the first section occurred between May 2021 and June 2022. As far as we know from the previous ones, this suggests that the price is pregnant with a major uptrend movement.
The consolidation phase after the falling wedge has been ongoing for a while. If historical data are to give us a glimpse of the future, and if the previous formation is to repeat this year, we are on the eve of a major uptrend movement.
The targeted end date for the current consolidation is in April, and after April 2024, the DOGE price needs to start an exciting rally. This also coincides with the Bitcoin halving period. Ali Martinez wrote;
“Dogecoin’s price movement seems to reflect the patterns observed in past bull markets. If history repeats itself, we might see DOGE enter a parabolic breakout around April.”
But the problem is that the cryptocurrency markets now have a very different environment than previous cycles. So, it may not be as easy as before for meme coins to catch another big hype, reaching the massive volumes of the past, instead of promising, technology-producing projects. If it happens, historical patterns talk about a new peak over three dollars.
However, the issue here is that the peak target calculated proportionally with the previous ones needs to be adjusted downwards as the market value increases. Otherwise, the altcoin would need to see a market value in the tens of trillions of dollars, which is not possible. Perhaps a more reasonable target should be growth of about 10% of the previous ones, like a 10x growth. This would mean the price reaching the dream target of one dollar.
