Dogecoin Enters $2 Surge Zone...2021's 26,000% Rally Pattern Reappears

▲ Dogecoin (DOGE)

Market interest in Dogecoin (DOGE) is growing again, with analyses suggesting it has entered a price structure similar to that just before its surge in 2021.

NewsBTC reported on May 5 (local time) that market analyst Crypto Patel spotted a recurring pattern on the Dogecoin chart similar to past major rallies. Patel analyzed that Dogecoin is once again in a strong accumulation zone that triggered its all-time high rally in 2021. He cited the past trend where Dogecoin traded around $0.10 before surging by 26,834% to $0.74.

Patel explained that statements by Tesla CEO Elon Musk played a major catalyst role in Dogecoin's rise at the time. He argues that interest in Dogecoin is reviving in the current market, and past bull market fractals are repeating. He analyzed that the bull market from 2020 to 2022 progressed in waves 1 to 5, followed by a bearish reversal after the final upward wave.

A similar structure is diagnosed to be unfolding in the current cycle. According to Patel's chart, Dogecoin showed two breakout trends in 2024, then reconfirmed previous lows before entering a strong rebound phase. He predicts that the market is currently in Wave 4, which has undergone volatility and price declines, and if past trends repeat, a parabolic rise could soon occur.

Patel's suggested upper target price is around $2. This is a scenario where the price increases by more than 2,767% based on an accumulation zone between $0.07 and $0.10. However, this forecast is based on the premise that past price structures will repeat.

The movements of whale investors are also supporting the bullish case for Dogecoin. Cryptocurrency analyst Mando CT revealed that the total holdings of whale wallets holding Dogecoin have reached an all-time high of 108.52 billion DOGE. Large holder activity has also increased to its highest level in the last six months, suggesting a resurgence in demand and interest for Dogecoin.

NewsBTC reported that Bitcoin (BTC)'s recovery to $80,000 also influenced Dogecoin's price rebound. As Dogecoin has been considered a representative asset in past memecoin rallies, there is a possibility that it could re-enter a period of strong volatility if whale accumulation and a general recovery in market risk appetite coincide.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*