A notable observation by crypto analyst Bitguru indicates that Dogecoin may be preparing for a significant recovery. This outlook is based on a setup that has previously triggered substantial rallies in the cryptocurrency’s price at two different instances. Bitguru anticipates that Dogecoin could replicate this performance as the pattern unfolds again.
The critical trend noted by the analyst revolves around the movement of Dogecoin’s price during past rallies, which appear to exhibit a consistent pattern. The analyst identifies three essential phases that need to occur during each rally. Initially, Dogecoin’s price experiences a sharp decline into a demand zone, followed by a period of consolidation, and finally, it rebounds after finding support.
This pattern was first observed during the second quarter of the year when Dogecoin made a run towards its initial peak for 2025. During that phase, the meme coin’s price plummeted drastically before finding stability in a demand zone. Following this consolidation phase at support levels below $0.15, Dogecoin subsequently experienced an impressive rally, soaring by nearly 100% to surpass $0.28.
A similar trajectory was noted in the third quarter, reinforcing the pattern. The analyst highlights that the same three phases repeated: a crash into demand, consolidation, and a subsequent rally leading to a price increase of close to 100%.
Currently, Dogecoin has retraced back to the support level of $0.15 after the consolidation, which could indicate that the meme coin is on the brink of another potential rally.
The question on many investors’ minds is whether another 100% increase is feasible. While historical patterns may not always replicate precisely, they often show striking similarities. The analyst’s data suggests that this trend may persist, potentially leading to a rapid bounce in Dogecoin’s price once support is solidified.
If the trend materializes as it did previously, there is a possibility that Dogecoin could double its value from its current price. This means that if the support at $0.15 holds, there is a realistic chance that Dogecoin’s price could climb back up to around $0.30 upon completion of this trend.
As the crypto market continues to evolve, many traders and investors will be watching this setup closely, hoping to capitalize on any upward momentum that may come with the anticipated rally. With historical trends supporting the possibility of growth, there remains a sense of optimism around Dogecoin’s future potential.