Dogecoin (DOGE) Price Patterns Resemble Last Years 3X PumpWhats Next?
Key Takeaways
- Dogecoins price charts hint at a significant pump, echoing patterns from past cycles.
- RSI analysis aligns with earlier consolidation phases that preceded notable rallies.
- Bitwises move toward a Dogecoin ETF highlights growing institutional interest in DOGE.
Dogecoin catches attention as its present consolidation phase is similar to some of the previous cycles of the cryptocurrency. As analysts have observed, DOGEs historical data might indicate what is in store for the digital currency. According to the analyst, there are similarities in the price movements that were seen last year and also during the previous four-year cycle.
Notably, in 2024, a similar consolidation phase led to a dramatic 3X price surge. Observers are now focusing on the structural alignment between these past movements and todays trends, speculating that Dogecoin might be on the brink of another significant rally.
Although everything is pretty much timed, one main signal appears: the Relative Strength Index. In the previous cycles, the trends of the RSI served as leading predictors for huge swings in price. These indicators offer hope to investors who are closely monitoring the cryptos trajectory, anticipating a strong bullish move in the weeks or months ahead.
RSI Suggests a Bullish Setup for Dogecoin
Looking deeper into the RSI of Dogecoin, one can find some interesting dynamics: Historically, RSI has provided the first signs of larger price movements in the cryptocurrency. Presently, RSI shows similar conditions as were seen in early 2024 ahead of the rally. What this means is that DOGE might be consolidating for a breakout.
While historical timelines give some indication, day-to-day fluctuations make it difficult to pinpoint where the start of the pump is. However, the similarities in RSI trends give hope that the coin is gathering momentum for a significant price movement, as per previous cycle patterns.
Bitwise Targets Dogecoin ETF in Strategic Move
At the same time, Bitwise Asset Management filed the legal entity BITWISE DOGECOIN ETF in Delaware. While that is not a full application with the SEC, its an important first step toward filing a Form S-1, which is required to take a Dogecoin ETF to market. If approved, the ETF could hit the market as early as April 2025.
Other market drivers may have come into play, including the spate of SEC approvals for ETFs on both Bitcoin and Ethereum-which has now fanned hope that Dogecoin may become listed alongside those. Even more recently, further cause for renewed optimism took hold when previous SEC Chair Gary Gensler resigned.
Market watchers believe that a Dogecoin ETF would further legitimize DOGE and open up new avenues for retail and institutional adoption, solidifying its position in the cryptocurrency market.
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Read more: https://www.tronweekly.com/dogecoin-patterns-resemble-last-years-3x-pump/
Text source: TronWeekly
