DOGE’s bullish fractal also gains support from expectations of interest rate cuts, the upcoming Bitcoin halving, and Elon Musk’s influence.
Dogecoin’s
DOGE
tickers down
$0.18
ongoing price action mirrors 2020 fractals that saw its price explode by more than 15,800% to a record high of $0.76 in just six months.
Dogecoin price trend in 2024 vs. 2021
The Dogecoin chart fractal below highlights the similarities between DOGE’s ongoing price performance and those recording after the completion of the 2018-2020 bear market.
For instance, in 2018-2020, Dogecoin experienced a prolonged sideways movement within the $0.0012 to $0.0056 range. This phase occurred at the chart’s base levels, between the 0.236 and 0.0 Fibonacci retracement lines, underlining a period of relative market equilibrium with low volatility.
Mirroring the earlier consolidation pattern, Dogecoin has — once again — entered a consolidation phase, but at a higher price range between $0.055 and $0.181. Interestingly, these new bounds also align with the 0.236 and 0.0 Fib retracement levels, respectively.
The current attempt to surpass the 0.236 Fibonacci threshold is akin to the breakout observed in the previous cycle, which may indicate a significant shift in market sentiment if the price sustains above this level, currently at $0.181.
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Fundamentals such as quantitative easing played a key role in sending Dogecoin prices up by more than 15,800% in 2020. Interestingly, the memecoin market is witnessing similar catalysts in 2024 as it attempts to break above its 0.236 Fib line resistance.
Rate cuts potential in 2024
In 2020, Dogecoin’s price surged past its 0.236 Fibonacci level, partly fueled by increased cash liquidity resulting from the U.S. Federal Reserve’s policy of lowering interest rates.
Likewise, Dogecoin’s current efforts to breach the 0.236 Fibonacci threshold coincide with the anticipation of three potential interest rate cuts in 2024.
Altcoin boom after Bitcoin halving
Dogecoin’s 2024 price trends draw further similarities from the 2020 fractal due to the occurrence of Bitcoin halving, events that halve the reward for mining new blocks.
Remarkably, following Bitcoin’s third halving on July 11, 2020, Dogecoin’s price surged by an astonishing 34,300%.
