Dogecoin follows ‘classical charting principle’ which hints at 1,000%+ DOGE rally
2024.11.13 11:53
Dogecoin (DOGE) has been one of the top performers in November and the rally gained speed after President-elect Donald Trump’s victory in the US elections. Over the past 30 days, DOGE gained 229%.
Best performing crypto asset over 30 days. Source: CoinGecko
The memecoin’s market structure has undergone a significant shift at $0.37, previously witnessed in October 2021. With a major turnaround in the short term, the price ceiling could be much higher for DOGE if it repeats its historical pattern.
DOGE exhibits “classic” inverse head-and-shoulders pattern
Peter Brandt, a veteran trader, has frequently analyzed Doge’s price action over the past few weeks. In a recent X post, the trader claimed that DOGE has exhibited “an outstanding charting market following classical charting principles.”
Dogecoin 1-week chart analysis by Peter Brandt. Source: X.com
Brandt explained that Dogecoin demonstrated a similar sideways accumulation range in 2020 before forming an inverse head-and-shoulders (H&S) pattern. In 2024, DOGE’s weekly chart followed the same path, and a bullish break from the current inverse H&S pattern led to its 190% price rally.
Dogecoin 1-week chart analysis by Mikybull. Source: X.com
Meanwhile, Mikybull, an economist and crypto trader, continued to address the potential “implication” of a golden cross that prevailed on Dogecoin’s weekly chart. While Dogecoin rallied close to 7,000% in 2021, the trader outlined a market peak of around $3 to $4 for the memecoin, or 1,136%, based on laws of diminishing returns.
Related: Why are memecoins up today?
Dogecoin may retest $0.30
On Nov. 12, Dogecoin’s price reached a high of $0.44 but immediately exhibited a correction of 22% to $0.34 on the next four-hour chart. Since then, the memecoin’s momentum has slowed, oscillating between $0.44 and $0.34.
However, the market anticipated a bullish reaction after Donald Trump officially announced Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (D.O.G.E), which has the same acronym as the memecoin.
Jacob Canfield, a crypto trader, believed that a lack of reaction might “spell a broader sell-off” period.
From a technical standpoint, Dogecoin’s immediate area of interest lies between $0.30 and $0.326 (green box), where a fair value gap (FVG) has formed on the 1-day chart.
Dogecoin 4-hour chart. Source: TradingView
Below the $0.30 level, an order block between $0.272 and $0.297 (yellow box) on the 4-hour chart is present. This order block draws a confluence with the 50-day EMA level, which may provide additional support for price recovery.
Related: Trump taps Elon Musk and Vivek Ramaswamy to slash gov’t with ‘DOGE’
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
