Dogecoin (DOGE) has a history of tracking Bitcoin (BTC) price, and with the latter forming a fresh all-time high, the meme coin’s breakout is inevitable. Moreover, technical analysis and on-chain data show that if Dogecoin price follows historical patterns, a record high may be formed soon. Here are three reasons that support this bullish thesis and explain why DOGE may be in the early stages of a bull run.
Here’s Why Dogecoin Price Breakout is Imminent
At press time, Dogecoin price trades at a weekly high of $0.24 with a 7.5% gain in 24 hours. Trading volumes were up by 68% in 24 hours according to data from CoinMarketCap, highlighting high market interest. As the market sentiment turns positive, the three reasons why a breakout to the upside is inevitable include:
Dogecoin is in the last stage of its bull cycle
Mean Dollar Invested Age surges
Spike in Age Consumed Metric
Dogecoin Enters Last Stage of Its Bull Cycle
Dogecoin price is in the final stage of its bull cycle. Looking at the chart below, the price has been following a three-stage bull cycle since 2014. This cycle starts with a downtrend, a consolidation range, and then a bullish breakout.
DOGE started the downtrend stage in 2021, which comprised a sharp correction from the $0.73 all-time high. It has since been stuck within a tight consolidation range, but is now showing signs of breaking out.
During each bullish breakout, DOGE has made a key milestone. In 2017, the price erased one zero, and this also happened again in 2021. The next milestone for Dogecoin price is $1, and if history rhymes, DOGE may reach this price before the end of the year.
Mean Dollar Invested Age
Dogecoin’s Mean Dollar Invested Age is rising, and this is a bullish signal suggesting that most holders are choosing not to sell. This conviction supports a bullish Dogecoin price forecast if there is a spike in demand.
The metric has also been on a gradual rise since 2023, which was when the current bull cycle started, suggesting a gradual accumulation of the token since then. This surge confirms that a DOGE bull run is inevitable, and the price of the top meme coin may soon surpass its previous all-time high and aim for fresh highs.
Spike in Age Consumed Metric
Dogecoin’s age consumed metric has surged, and this adds to the reasons why Dogecoin price breakout is imminent. Looking at the historical trends, whenever this metric spikes, DOGE also tends to record a rebound, and if history rhymes, the ongoing rally will likely continue.
This spike also tends to show a local bottom to confirm that Dogecoin price will surge. If DOGE has indeed bottomed at a period when the broader market sentiment is highly bullish, an upward breakout is now imminent.
Therefore, by looking at the historical trends as well as the combination of bullish on-chain indicators, it is clear that a Dogecoin breakout is imminent and the price may soon reach fresh record highs.
Frequently Asked Questions (FAQs)
Some of the factors that will influence a Dogecoin price breakout include a spike in the Mean Dollar Invested Age, historical trends, and a surge in the age consumed metric to show DOGE has bottomed.
The 3-stage bull cycle shows that Dogecoin is about to break out. The meme coin has completed the consolidation phase and now targets more gains.
Dogecoin price can rally past all-time highs to $1 during the current bull market. The strong bullish outlook across the broader market will be a key factor that supports this rally.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
