Dogecoin's price has again reached the 100-week simple moving average (SMA), which has historically preceded breakouts and may indicate upcoming growth.
Historical Interaction with the 100 SMA
Dogecoin's price history shows several consolidation and breakout events after hitting the 100 SMA. The price was below this level before taking off in 2017, with similar patterns seen in 2020 leading to a remarkable rally into 2021.
Recent Market Developments
Technical analyst Trader Tardigrade observed that in 2024, Dogecoin has again reached the 100 SMA. Previous movements suggest that when the price hits this level, strong upward momentum often follows. Purple markers denote resistance points where price temporarily stalled before establishing a clear trend direction.
Market Outlook
Dogecoin's current movement aligns with its historical pattern where testing the 100 SMA precedes a potential price increase. The market previously saw prolonged consolidation at this level before breakouts. If the pattern holds, the cryptocurrency could establish another strong uptrend.
Market participants continue to monitor Dogecoin's behavior to determine if historical correlation with the 100 SMA persists.
