Dogecoin Echoes 2020: A Potential Bull Run on the Horizon?

Dogecoin (DOGE) is currently ranked in the top 10 highly capitalized cryptocurrencies and has a price value of $0.083858, with a 24-hour trading volume of $703.37 million and a market cap of $12.01 billion. In the last 24 hours, the price of Dogecoin (DOGE) has experienced a slight increase of 1.98%.

Analyzing Dogecoin’s Historical Patterns

Renowned crypto analyst Ali Martinez has drawn parallels between this latest price action by Dogecoin (DOGE) and what took place in 2020. To understand what this might mean, we must dig into the past and compare it with where DOGE stands today.

In addition, in 2020, there was a series of events that led to a sudden rise of Dogecoin: Beginning on May 1st, 2020, DOGE broke out from a descending triangle chart pattern, a technical signal usually indicating an imminent price surge. This breakout was recorded around $0.0029.

After breaking out, from May 8th to June 1st, 2020, DOGE consolidated with the price action ranging within the defined limits. Such a move likely presented an opportunity for buyers to accumulate in preparation for the next move.

Then, in July, the consolidation phase finally put an end, and DOGE exploded into a parabolic uptrend, recording monstrous 28,770% gains by the year’s end, culminating in an all-time high of $0.7378 in May 2021.

Dogecoin Current Trends & Future Speculations

Fast forward to the present, and one interesting parallel Martinez can’t help but notice: Over the past few weeks, DOGE has broken out of another descending triangle pattern, giving a potential upside target.

Currently, DOGE is in a consolidation phase and mirroring the pattern observed in 2020. This has prompted Martinez and a few other analysts to wonder if DOGE is again on the move to another massive bull run.

Beyond chart patterns, a couple of points are needed to be considered. The bullish side is the increased use of DOGE as a payment method, which would bring in more demand and utility toward it. A resolute digital currency, DOGE, is backed by ongoing support from the active and engaged DOGE community.

Secondly, influencer endorsements, especially those emanating from Elon Musk, are still coming in, hence enabling it to add up its list of investors who pour funds into the coin.