The historical price trend of Dogecoin (DOGE) continues to attract attention. Analysts have been tracking a repeating pattern that could lead to a strong increase towards the $1 region.
The most recent formations indicate a structure similar to previous bullish cycles. Technical and derivative data have passed initial tests of market positioning towards higher gains.
The weekly Dogecoin price chart is forming a repeating pattern.
When analyzing the weekly Dogecoin price chart, analyst Trader Tardigrade noted a consistent system of small and large price surges.
Each cycle starts with a small pump, followed by a strong increase pushing the meme coin to new heights.
Notably, previous trends indicate a breakout up to $0.22 at the beginning of 2024 and further up to $0.45 by the end of the year. Both moves occurred after a short-term price surge and accompanied by an upward trend line.
Similarly, the latest DOGE price movement has once again been recorded on this trend line, forming a base pattern similar to those seen before.
The chart exhibits a similar retracement and bullish pattern, where smaller consolidations are followed by a parabolic move.
Additionally, this consistency may be forming a technical foundation for another expansion phase. Trader Tardigrade suggests that if this pattern continues to hold, the price of Dogecoin could be entering a setup consistent with previous up-breakout sequences. Therefore, this is pointing towards the $1 region as a potential target.
The monthly DOGE price chart reinforces the long-term upward trend.
Furthermore, the long-term bullish structure of Dogecoin is further supported by the monthly chart. In a separate analysis, Trader Tardigrade observed a clear breakout after prolonged downtrends with three distinct historical cycles.
Notably, each cycle begins with a strong correction and a strong recovery, then maintains an upward momentum.
The key reversal areas, marked with asterisks on the chart, become the starting point for a new bullish phase, developing over several months.
Furthermore, the current monthly configuration appears to be repeating the previous two cycles, in which the DOGE price is currently in a correction phase.
Upward momentum is beginning to regain with the green trend line after higher lows. Additionally, the reversal pattern from significant lows to these longer price surges has been ongoing since 2015.
Because the latest price increase coincides with the same formation period, this meme coin may create another prolonged price surge lasting several months, following the previous trend.
Dogecoin derivatives data
Meanwhile, the latest Dogecoin derivatives data from CoinGlass shows continued bullish sentiment, particularly in the options sector. DOGE options volume increased by 184.15% and open interest in options rose by 64.75%.
Moreover, this increase is associated with a rise in speculative trading, indicating that traders are preparing for potential price changes.
Meanwhile, total trading volume decreased by 17.95% to $3.91 billion, and open interest fell to $2.06 billion. This suggests a reduction in leverage or a cooling off in futures activity.
Similarly, the long/short ratio on the largest exchanges, including Binance and OKX, shows that traders are still leaning towards long-term positions.
On OKX, the long/short ratio stands at 3.64, and the ratio on Binance's top traders is also skewed towards long, at over 3.0. In the past day, total liquidations amounted to $12.74 million, of which $12.13 million were long and $606 thousand short.
Meanwhile, recent analysis notes that the price of Dogecoin may be starting 'Cycle 3' of its historical trend. A chart shows a continuous consolidation pattern followed by strong price increases.
In that case, the price of DOGE could head towards $10 in the long term. The green indicators reflect previous breakouts, suggesting the possibility of a new bullish cycle.