Dogecoin has been on a downward slide since December 2024, losing over 50% of its value in just four months. This has understandably worried some investors. But one analyst, Trader Tardigrade, thinks the worst might be over.
Technical Indicators Point to a Potential Rebound
Trader Tardigrade, using data from charts like TradingView, sees some striking similarities between Dogecoin’s current performance and its behavior before a huge price jump in late 2024. Specifically:
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MACD Consolidation: The Moving Average Convergence Divergence (MACD) indicator shows a period of consolidation, similar to what happened before Dogecoin’s 400% rally in November 2024. This consolidation followed a market crash, just like now.
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RSI Divergence:
The Relative Strength Index (RSI) also shows a pattern similar to the one seen just before the November 2024 rally. A sharp dip followed by a quick recovery is a bullish signal.
Could Dogecoin Hit $0.5 or Higher?
If history repeats itself, Dogecoin could be poised for a significant recovery. The 2024 rally saw a 400% price increase, taking Dogecoin close to $0.5. A similar surge now could push it even closer to its all-time high of $0.73. This could also trigger a broader rally in other meme coins like Shiba Inu and PEPE.
What Could Go Wrong?
It’s important to remember that the market is influenced by many things, including global economics and politics. The current pause in Donald Trump’s tariff war is temporary, and its resolution could significantly impact the crypto market. So, while the technical indicators look promising, there are still some uncertainties.
