Is Doge Preparing for a Rally? Answering the When, How and Why

• DOGE has barely been able to keep up with Bitcoin in the last four months
• Expect the consolidation phase to continue.

Dogecoin [DOGE] The market has been performing well since October 2023. The bulls gained 45% last October 19th. This is still only half of the Bitcoin profits [BTC] made at the same time.

Many people say that buyers who lag during a rally are weak. An analyst posted a chart on X (formerly Twitter) that gives Dogecoin supporters some hope.

The argument for Dogecoin’s consolidation and breakout

Ali’s post suggested that Dogecoin had entered a phase of consolidation. A similar pattern emerged ahead of the 2021 rally. AskFX delved deeper into TradingView’s weekly chart to determine when and how strong DOGE might rally.

A range formation lasted 576 days or a year and seven months before the previous rally. The subsequent rally was 18376% of the range highs. DOGE was moving within a range of 483 days at the time of writing.

That’s almost a year and four months. We still have three months to form the range before DOGE can break out. Dogecoin is not the only meme coin to enjoy similar popularity.

The capital previously invested in DOGE will now be distributed across various meme coins, such as Shiba Inu [SHIB]Bonk [BONK]Pepe [PEPE]. Santiment metrics confirmed this idea, but we’ll get to that later.

The price chart above shows that the Fibonacci extension level (pale yellow) of 261.8% has been reached.

The scale used was logarithmic. DOGE’s next cycle was predicted to reach $59 using a series of Fib levels similar to those used for triangle formation.

To put this into context, a DOGE price of $7,012 would be equal to the market cap of Bitcoin. If DOGE was priced at $59, its market cap would be $8.5 trillion. That’s almost three times Microsoft’s current market capitalization.

Trends between 2020 and 2024

The number of active addresses peaked in 2021 and then began a downward trend until November 2023. The trend changed quickly and the number of active addresses for 30 days reached an all-time high based on Santiment data.

Weighted Sentiment (30-day simple moving average), which is a measure of weighted sentiment, has also increased over the past three months. However, the peak value of 2021 has not yet been reached.

The number of meme coins has been steadily increasing, suggesting that the coin is not yet obsolete despite all the new tokens on the market. Social dominance was the most fascinating finding.

Social dominance peaked in August 2021. Since then it has been steadily decreasing and was at 1.15% at the time of going to press. This confirmed the assumption that capital could be diluted into the Dogecoin markets.

What is the current value of 1, 10 or 100 DOGE?

Cryptocurrency market capitalization is steadily increasing and it is possible that there will be far more capital in the next cycle than in the 2020 cycle.

It is still too early to say whether DOGE can repeat its previous gains . However, one thing is certain: you cannot rule out a memecoin boom of overwhelming proportions for retirement savings.