Dogecoin Price Returns To Key Local Peak: Is Another Major Uptrend On The Horizon?
Dogecoins price action in the past 24 hours has been characterized by a struggle to hold above the $0.20 price level. Notably, this struggle above $0.20 comes after Dogecoins break below the level on the last day of February, marking the first time it traded below $0.20 since November 2024.
From a technical outlook, this recent price crash aligns with a pattern that has preceded rallies for DOGE, with the meme coin essentially re-visiting its previous local peak.
Dogecoin Price Revisits Local Peaks Before Another Breakout
Dogecoins price crash to $0.20 could begin an extended bearish move from here, but technical analysis suggests otherwise. Crypto analyst Trader Tardigrade has provided a bullish perspective, arguing that Dogecoins current price action fits within a well-established pattern that has historically preceded major rallies on higher timeframes.
As noted by the analyst, Dogecoins price has pulled back to trading around the $0.22 level, which is only a retest of its local peak after the rally in the first three months of 2024. Interestingly, the meme coins latest movement to $0.22 follows a larger correction from its December 2024 high of $0.475.
Interestingly, this isnt the first time that Dogecoin is revisiting its previous local peak this cycle, with Trader Tardigrades analysis highlighting how Dogecoin tends to revisit former peaks before entering a sustained rally. According to the weekly candlestick timeframe chart that accompanied his analysis, Dogecoin has revisited its local peaks about three times since July 2023.
The most notable revisit of a local peak was in Q3 2024, when Dogecoin retraced to around $0.095 after its peak of $0.22 in April 2024. Interestingly, this retracement to $0.095 in Q3 2024 was also a revisit of its December 2023 peak price. It continued to hover around $0.095 between July and September 2024 before surging toward $0.48 in Q4 2024. Therefore, if history repeats itself, the current consolidation phase around $0.22 could last for several weeks before the next leg up.
Image From X: Trader Tardigrade
Major Uptrend Coming Next?
The current return to the $0.22 price zone suggests that Dogecoin may trade within this range for the next few months before another breakout. As such, the Dogecoin price may continue to range between $0.20 and $0.22 until May 2025. However, it might not take that long for Dogecoin to kick off the next rally.
Nonetheless, Trader Tardigrades projection put the next rally at a price target above $0.8. Such a move would see Dogecoin trading at new price territories above its current all-time high of $0.7316.
In a separate analysis, the same crypto analyst pointed out that Dogecoins 4-hour Relative Strength Index (RSI) had broken out of a descending trendline, signaling that bullish momentum is building. While this is a promising development, he noted that Dogecoin must still break out of its Descending Trendline for the uptrend to fully take shape.
At the time of writing, Dogecoin is trading at $0.2062.
Featured image from The Street, chart from TradingView
Text source: NewsBTC
