Analyst Trader Tardigrade has highlighted promising technical indicators for Dogecoin, suggesting the meme coin could be set for a substantial recovery. While DOGE has had its share of price swings, the analyst points to potential upward momentum ahead.
The analyst highlights a recurring historical pattern where DOGE undergoes a steep pullback before rallying significantly. The latest market movement suggests DOGE is mirroring past cycles, potentially setting up for a surge toward $2. Trader Tardigrade’s analysis identifies a pattern in Dogecoin’s price behavior over multiple cycles.
#Dogecoin: The down percentages in the final pullbacks are very close 🔥
— Trader Tardigrade (@TATrader_Alan) February 7, 2025
Before each strong rebound, $DOGE tends to pull back more than 50%.
The first pullback noted a -59.76% decline, while the second revealed -56.2%.
The current (third) pullback recorded -58.25%, qualifying it… pic.twitter.com/abOyjsdLxQ
In 2017 and 2020, DOGE experienced deep corrections of 59.76% and 56.2%, respectively, before rallying to new highs. A similar pullback of 58.25% has now been recorded in 2024, aligning with previous trends.
According to the analyst, DOGE tends to retrace between 56% and 60% before entering a bullish phase. This consistency suggests a structured market behavior, likely influenced by accumulation phases and broader liquidity shifts. If the trend holds, the meme coin could be poised for another strong upward move.
What you'll learn 👉
Market Indicators and DOGE’s Technical Setup
The analysis presented alongside the tweet is based on a long-term monthly chart of DOGE. It reveals that past recoveries from deep corrections were followed by parabolic rallies. DOGE’s ability to rebound from these levels has historically led to huge price surges.
At publication, Dogecoin is trading at $0.2461, with a daily trading volume of $1.96 billion, according to CoinGecko data. Over the past week, DOGE has declined by 25.22%, reflecting short-term bearish sentiment. However, historical patterns suggest that the current price action could represent a final accumulation phase before a strong uptrend.
Read also: SUI Tests Key Support as Institutional Interest Grows
Will DOGE Reach $2?
Based on past performance, DOGE’s potential breakout could lead to a price target of $2. The technical structure shows a clear correlation between deep pullbacks and subsequent rallies.
If momentum builds and volume increases, DOGE could mirror previous cycles and achieve a substantial price surge. Watching for confirmation signals, including increased buying activity and breakout patterns. While market conditions remain uncertain, historical data suggests that Dogecoin’s price movement may be following a well-established trajectory toward higher valuations.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
