The Dogecoin price has been steadily going down since December 2024 after hitting a new local peak in November. This has carried into the new year, and so far, the meme coin has lost over 50% of its value in the space of four months. While this has sparked fear in the hearts of investors, crypto analyst Trader Tardigrade is moving in the opposite direction, as they explain that the altcoin is nearing the end of its pullback and, as such, could be expected to see a pump soon.
MACD And RSI Are Similar To 2024
In an X (formerly Twitter) post, the crypto analyst pointed out some striking similarities between the current Dogecoin chart and what it looked like back in 2024 before the 400% rally. A couple of things stood out that showed that the technical developments are pointing to a potential breakout like the one seen in November.
For one, there is the MACD consolidation that is going on now. This consolidation began after the market crash back in January sent the price spiraling down. Interestingly, this MACD consolidation is similar to the consolidation recorded in the months leading up to November for Dogecoin. It also lasted a couple of months before the surge. And now, the Dogecoin chart is showing a similar consolidation.
Another development on the chart is the RSI Divergence. In October, just a month before the rally in November, there had been a divergence where the RSI had dipped and then picked up quickly. In April, a similar trend has played out after a sharp dip and then a recovery. If this continues to play out like it did last year, then the Dogecoin price is nearing the end of the downtrend and could put a bottom in soon enough.
Where Could The Dogecoin Price Go From Here?
If the Dogecoin price continues to mirror the performance from 2024, then it could be gearing up for a major recovery trend. The last time this played out between October and November 2024, the end result was a 400% increase in price that saw Dogecoin touching close to $0.5.
Taking a cue from this and the Dogecoin price staging another 400% increase would put the meme coin close to its all-time high price of $0.73. Not only this, a rise in Dogecoin is expected to trigger a meme coin rally, pulling the likes of Shiba Inu and PEPE up with it.
However, all of this is still dependent on macroeconomic factors and the political landscape. Right now, Donald Trump’s tariff war is merely on pause for the next three months, and what happens once that timeframe elapses will either make or break the market.
Featured image from Dall.E, chart from TradingView.com
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