The current decline in the prices of various cryptocurrencies has been a worry for investors. The DOGE meme coin has been down by more than 20% in the past three days. The price recovery is not yet certain, as the dip is a general condition in the crypto market.
Looking into Dogecoin’s price pattern, expert analyst Trader Tardigrade noticed a recurring pattern that suggests that the current DOGE pullback might actually be setting the stage for significant future gains.
Looking at Dogecoin’s past performance, Tardigrade points to two notable instances that mirror today’s situation. In 2016, DOGE experienced a pullback of 59.76%. What followed, however, was – a bull run that yielded gains of 9,221%.
What you'll learn 👉
The Path to Recovery
History seemed to repeat itself in 2020 when Dogecoin underwent a similar correction. As Trader Tardigrade notes, DOGE retraced 56.2% during this period. Yet again, this decline preceded an even more impressive surge, with the meme cryptocurrency skyrocketing by 30,693%.
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“When in doubt, check the macro chart,” advises Tardigrade, suggesting that today’s investors should view the current dip through a wider lens. His analysis implies that the present pullback could be following a familiar pattern that has historically preceded significant upward movements.
Is This Time to Buy DOGE Meme Coin Again?
For those who are playing the long-term game, they may prefer to use strategies like dollar-cost averaging to buy the DOGE meme coin at various psychological or key levels.
However, short-term traders would observe that the price broke out of a trendline triangle support yesterday and has seen more declines since then. Perhaps some reversal candlesticks may signal when the bottom is in.
Based on the available price pattern, the $0.3 level (the support of the broken descending triangle pattern) could be a key level to watch. Price reclaiming this level, from the current $0.25, could be seen as a recovery sign. However, a further dip today would invalidate the setup.
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