Bitcoin

Dogecoin

Elon Musk

<p>Dogecoin's (<a href="https://cointelegraph.com/doge-price-index">DOGE</a>) ongoing price action mirrors 2020 fractals that saw its price explode by more than 15,800% to a record high of $0.76 in just six months.</p>
<h2 id="dogecoin-price-trend-in-2024-vs-2021">Dogecoin price trend in 2024 vs. 2021</h2>
<p>The Dogecoin chart fractal below highlights the similarities between DOGE's ongoing price performance and those recording after the completion of the 2018-2020 bear market.</p>
<p>For instance, in 2018-2020, Dogecoin experienced a prolonged sideways movement within the $0.0012 to $0.0056 range. This phase occurred at the chart’s base levels, between the 0.236 and 0.0 Fibonacci retracement lines, underlining a period of relative market equilibrium with low volatility.</p>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/abe44db3-fdf8-46c9-8db9-81e5e6a87f87.png">
 <figcaption style="text-align: center;">
  <em>DOGE/USD weekly price chart. Source: TradingView</em>
 </figcaption>
</figure>
<p>Mirroring the earlier consolidation pattern, Dogecoin has — once again — entered a consolidation phase, but at a higher price range between $0.055 and $0.181. Interestingly, these new bounds also align with the 0.236 and 0.0 Fib retracement levels, respectively.</p>
<p>The current attempt to surpass the 0.236 Fibonacci threshold is akin to the breakout observed in the previous cycle, which may indicate a significant shift in market sentiment if the price sustains above this level, currently at $0.181.</p>
<h2 id="dogecoin-fundamentals-2020-vs-2024">Dogecoin fundamentals 2020 vs. 2024</h2>
<p>Fundamentals such as quantitative easing played a key role in sending Dogecoin prices up by more than 15,800% in 2020. Interestingly, the memecoin market is witnessing similar catalysts in 2024 as it attempts to break above its 0.236 Fib line resistance.</p>
<h3 id="rate-cuts-potential-in-2024">Rate cuts potential in 2024</h3>
<p>In 2020, Dogecoin's price surged past its 0.236 Fibonacci level, partly fueled by increased cash liquidity resulting from the U.S. Federal Reserve's policy of lowering interest rates. </p>
<p>Likewise, Dogecoin's current efforts to breach the 0.236 Fibonacci threshold coincide with the <a href="https://cointelegraph.com/news/btc-price-gains-12-fomc-bitcoin-260m-etf-outflows">anticipation</a> of three potential interest rate cuts in 2024.</p>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/c0a83f9a-4067-4b4c-b193-ed8e5090643b.png">
 <figcaption style="text-align: center;">
  <em>Source: X</em>
 </figcaption>
</figure>
<h3 id="altcoin-boom-after-bitcoin-halving">Altcoin boom after Bitcoin halving</h3>
<p>Dogecoin’s 2024 price trends draw further similarities from the 2020 fractal due to the occurrence of <a href="https://cointelegraph.com/learn/bitcoin-halving-2024">Bitcoin halving</a>,&nbsp;events that halve the reward for mining new blocks.</p>
<p>Remarkably, following Bitcoin's third halving on July 11, 2020, Dogecoin's price surged by an astonishing 34,300%.</p>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/57db2554-4332-4318-a03a-189b9d63ea62.png">
 <figcaption style="text-align: center;">
  <em>DOGE/USD weekly price chart. Source: TradingView</em>
 </figcaption>
</figure>
<p>Similarly, after Bitcoin's second halving, Dogecoin experienced a rally of over 6,350%, showcasing its potential for delivering high returns to investors seeking opportunities in alternative cryptocurrencies after halvings.</p>
<p><strong><em>Related: <a href="https://cointelegraph.com/news/bitcoin-halving-retail-investors-portfolio">Bitcoin halving hype: How retail investors can prepare</a></em></strong></p>
<p>Bitcoin’s fourth halving will happen around April 19-20, following which Dogecoin’s price may explode if the history is any indication.</p>
<h3 id="the-return-of-elon-musk">The return of Elon Musk</h3>
<p>Elon Musk's <a href="https://cointelegraph.com/news/dogecoin-is-better-than-bitcoin-for-payments-elon-musk-declares">active and public support</a> of Dogecoin during 2020 and 2021 played a crucial role in its dramatic price increases while elevating its ranking among the top cryptocurrencies. Now, in 2024, the billionaire entrepreneur is eyeing a move toward integrating DOGE into mainstream platforms.</p>
<p>For instance, on March 14, Musk <a href="https://cointelegraph.com/news/elon-musk-dogecoin-doge-buy-teslas-at-some-point">said</a> his electric vehicle company, Tesla, could add DOGE payments for purchasing cars at some point in the future.</p>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/92fe8b86-aef5-48ca-be93-f16cb691a93a.png">
 <figcaption style="text-align: center;">
  <em>Source: X</em>
 </figcaption>
</figure>
<p>Furthermore, Musk’s “everything app” X (previously known as Twitter) <a href="https://cointelegraph.com/news/dogecoin-hits-weekly-high-after-x-payments-account-elon-musk">established</a> an XPayments account for its forthcoming payment functionality.&nbsp;There’s a growing expectation that the X app will roll out in-app payment capabilities by mid-2024, which may include cryptocurrencies like Dogecoin.</p>
<h2 id="dogecoin-technical-analysis">Dogecoin technical analysis</h2>
<p>Technically, Dogecoin’s weekly relative strength index (RSI) has crossed above 70, an overbought zone, which raises its potential to enter a correction or consolidation phase in April.</p>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-03/3f2f2ef9-d317-49ea-b643-076de308e846.png">
 <figcaption style="text-align: center;">
  <em>DOGE/USD weekly price chart. Source: TradingView</em>
 </figcaption>
</figure>
<p>Nonetheless, a clear breakout above the 0.236 Fib resistance could send DOGE's price toward the 0.382 Fib line at around $0.26 by April's end. That is up approximately 35% from current price levels.&nbsp;&nbsp;</p>
<p>Conversely, a decisive pullback from the 0.236 Fib line risks bringing Dogecoin's price toward its 50-week exponential moving average (50-week EMA; the red wave) at around $0.095, down about 48% from current prices.</p>
<p class="post-content__disclaimer">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. </p>

Is Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?

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