Dogecoin follows “classic chart principles” suggesting Dogecoin will rise by more than 1,000%

Dogecoin was one of the best performing currencies in November, with its gains accelerating after President-elect Donald Trump won the U.S. election. Over the past 30 days, Dogecoin has risen 229%.

Top performing crypto assets over 30 days. Source: CoinGecko

The memecoin’s market structure has seen a significant shift at $0.37, which was previously seen in October 2021. If DOGE repeats its historical pattern, its price cap could be much higher after a significant shift in the short term.

DOGE presents a “classic” inverted head and shoulders pattern

Veteran trader Peter Brandt has frequently analyzed Doge’s price action over the past few weeks. In a recent X post, the trader claimed that DOGE exhibits “excellent charting markets that follow classic charting principles.”

Peter Brandt's analysis of Dogecoin's 1-week chart. Source: X.com

Brandt explained that Dogecoin also exhibited a similar sideways accumulation range in 2020 before forming an inverted head and shoulders (H&S) pattern. In 2024, Dogecoin’s weekly chart also followed the same path and a bullish breakout from the current inverted H&S pattern led to a 190% increase in its price.

Mikybull's analysis of Dogecoin's 1-week chart. Source: X.com

Meanwhile, economist and cryptocurrency trader Mikybull continues to explore the potential “meaning” of the golden cross prevailing on Dogecoin’s weekly chart. Although Dogecoin has risen nearly 7,000% in 2021, based on the law of diminishing returns, traders expect the memecoin’s market peak to be around $3 to $4, or 1,136%.

Dogecoin has retested $0.39

On December 12, the price of Dogecoin reached a high of $0.44 but immediately saw a 22% correction to $0.34 on the next four-hour chart. Since then, the memecoin’s momentum has slowed down, fluctuating between $0.44 and $0.34.

However, after Donald Trump officially announced that Elon Musk and Vivek Ramaswamy would head the Department of Government Efficiency (DOGE), which has the same acronym as memecoin, the market expected a bullish reaction.

Jacob Canfield, a cryptocurrency trader, believes the lack of reaction could “signal a period of broader selling.”

From a technical perspective, the immediate area of ​​interest for Dogecoin lies between $0.30 and $0.326 (green box), where a fair value gap (FVG) has formed on the 1-day chart.

Dogecoin 4-hour chart. Source: TradingView

Below the $0.30 level, an order block has emerged between $0.272 and $0.297 (yellow box) on the 4-hour chart. This order block is converging with the 50-day moving average level, which could provide additional support for price recovery.