Dogecoin (DOGE): Continually repeating the pattern before sudden price spikes
DOGE is reflecting patterns seen in the previous two cycles, both leading to significant rallies.
Could this be the foundation for the next breakout?
Dogecoin (DOGE) is quietly re-enacting its old strategy. Although the price is still far from the peak of 2021 and has dropped about 30% in just a month, the bigger picture remains very familiar. In the cycles of 2016–17 and 2020–21, DOGE played a role in a sideways state for nearly a year before bouncing back into strong growth.
In those periods, DOGE increased by more than 5,000% in 2017 and reached a miraculous 21,000% in 2021. Currently, it has not reached that peak, but the signals forming a similar pattern are still very clear.
287% growth, then silence – But what does that silence signify?
In 2024, DOGE ended around 0.31 USD, yielding a profit of 287% for the year and rising into the top 10 leading cryptocurrency assets. This move triggered retail investor interest and created a mild FOMO effect, making the market more vibrant.
Source: TradingView (DOGE/USDT)
However, DOGE does not want to follow the high parabolic model. Instead, it remains steady despite a 30% drop from its recent peak, even in the context of a challenging macroeconomic environment. According to TinTucBitcoin, this may be a signal of strategic accumulation just beneath the surface, predicting that the bull market is preparing for a familiar breakout based on a clear accumulation structure.
Dogecoin is in a phase of strategic accumulation
Last month, DOGE's Buying Strength on the open interest market fluctuated around 3 billion USD. As of now, it has decreased to 1.74 billion USD. This aligns with the breakdown below the key support level of 0.20 USD. However, if the offset trading demand returns at these levels, it could be a healthy reset, literally after a strong sell-off leading to significant net liquidity withdrawal and a turbulent market context.
In addition, the supply change on the Dogecoin exchange during the first 30 days of June shifted to a negative state, signaling a withdrawal of funds from major exchanges. This means that supply is leaving the market, suggesting strategic accumulation activity and potential bullish trends.
Source: Glassnode
Meanwhile, the number of active addresses has increased back to 118,000, compared to below 80,000 in mid-June, indicating that the on-chain flow has recovered strongly. This combination of factors suggests that DOGE's 30% monthly drop is not the end but is opening up opportunities for strategic accumulation. The spot market may be preparing to absorb capital flows from the derivatives market that have been pushed out.
Historical patterns reflect that if DOGE continues to hold important support levels, maintains low downward pressure, along with accumulation from whales and retail investors, the likelihood of forming a similar breakout pattern will be higher than ever.
Source: https://tintucbitcoin.com/dogecoin-giam-30-xu-huong-moi/
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