Known for its volatility, Dogecoin is showing signs similar to historical cycles that indicate a possible rally amid current consolidation.
Historical Cycles of Dogecoin
Since its inception in 2014, Dogecoin has experienced three major cycles that began with a descending trend and ended with a significant surge. The first wave was recorded between 2014 and 2017, the second from 2018 to 2021. The current third cycle shows similar tendencies.
Consolidation Phase and Forecast
According to analysts, before each significant surge, there is always a phase of low-volatility consolidation. The current phase exhibits comparable characteristics, suggesting that Dogecoin is prepared for a new breakout. Historically, breakouts have resulted in gains of 200-300%.
Signs of Imminent Rally
Current price action remains within the consolidation range, yet technical indicators point to an imminent breakout. Should the price breach resistance, it might replicate past rallies, potentially surpassing Dogecoin's previous highs.
Dogecoin continues to intrigue investors with its cyclic movements and current consolidation phase. If history repeats itself, the cryptocurrency may witness another notable jump in the near future.
