4 hours ago
1
content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Dogecoin has been trading within a relatively narrow descending range over the past few days, showing signs of gradual strength building underneath the surface. Although the broader crypto market has been a mix of consolidations and breakout attempts, Dogecoin has maintained support above $0.17 and is attempting to form a higher low on the weekly price chart. This current price action coincides with the appearance of a lower low for one technical indicator that preceded a rally in 2020.
ADX Pattern Repeats For Possible Dogecoin Breakout
According to crypto analyst Trader Tardigrade, Dogecoin’s weekly Average Directional Index (ADX) is showing a very similar setup to the one that occurred just before Dogecoin’s monumental 36,000% rally in 2020. The chart shared on the social media platform X highlights a series of ADX movements: two mid-level peaks followed by a sharp drop to a new low.
This structure, now repeating again in 2024 and 2025, looks like the same ADX pattern observed in the months leading up to Dogecoin’s breakout from under $0.01 to above $0.70 during the last bull cycle.
Source: Trader Tardigrade on XThis repetition is revealed in the weekly candlestick price chart below, which shows how each of these lower low dips on the ADX curve, following twin mid-range tops, marked the end of price accumulation phases and the beginning of explosive directional moves. The latest ADX dip, again shown by a purple arrow in the chart below, aligns with the same phase of compression seen in late 2020, shortly before Dogecoin surged past many resistance levels.
Price Target For DOGE
Although past performance doesn’t guarantee future outcomes, the visual and structural similarity between Dogecoin’s current ADX pattern and that of 2020 is difficult to ignore. Trader Tardigrade’s chart highlights this by drawing a vertical dotted line from the ADX low in mid-2020 to the beginning of Dogecoin’s historic rally, which eventually carried the price to an all-time high of $0.7316 in May 2021. That move followed a nearly flat ADX curve, which then curved sharply upward, exactly the kind of movement now taking shape again in the present cycle.
A second dotted line has been placed from the most recent ADX low on the current chart, and a similar trajectory could play out. This time, the projected target extends well beyond previous highs, pointing to a price above $4.50. Although not exactly a repeat of the 36,000% rally, the implied directional strength could still result in a powerful breakout.
At the time of writing, Dogecoin is trading at $0.1708. Should it follow the projection and reach the $4.50 price target, this would be a 2,540% increase from current price levels.
Featured image from Getty Images, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
English (US) · 