Popular trader and chart analyst Peter Brandt has identified interesting parallels between the price action of Bitcoin (BTC) and Dogecoin (DOGE) in 2015 and 2016, with the chance for a big rally in store. Crypto enthusiasts were discussing Brandt, who is famous for his market predictions, on the social media platform X.
Tech indicators point to Dogecoin’s historical trajectory suggesting it could be mimicking that of Bitcoin. He mentioned patterns like a ‘blow off top’ followed by a falling wedge correction, a double bottom and a complex correction phase. An asset experiencing a ‘blow off top’ is one where the price rises rapidly but eventually falls quickly.
Does anybody see the similarities of $DOGE to the $BTC chart in 2015-2016?
-Blow off top
-Correction via a falling wedge
-Double bottom
-Complex correction following completion of double bottom
DOGE is at life cycle where BTC was in May 2016
It was the chart in Spring 2016 that… https://t.co/bpJbFyrAyS pic.twitter.com/QiOhpEnaal
— Peter Brandt (@PeterLBrandt) November 13, 2024
Dogecoin’s Market Dynamics: A Reflection of Bitcoin in May 2016
Brandt said Dogecoin’s current market dynamics resemble those of Bitcoin in May 2016. That was when Bitcoin was completing its correction and starting its powerful trend reversal which would later propel the asset to new highs. Brandt said DOGE chart inhabits classical charting principles, highlighting the meme coin’s strong commitment to historical technical patterns. He highlighted:
“DOGE is at life cycle where BTC was in May 2016. It was the chart in Spring 2016 that first turned me onto bitcoin and I bought my first coin.”
By data on Santiment on-chain analytics platform DOGE is now at $0.38, and it has doubled in value over the last week. To a great extent this rally is a result of the retail investors, with the wallets under 100,000 DOGE skyrocketing by 74,885 over the past 4 weeks. However, in contrast, larger wallets or ‘whales’ and ‘sharks’ containing 10,000 plus addresses have decreased by 350 addresses over the same period.
Dogecoin has recently corrected from its 24 hour high of $0.4346, but it’s positively centered about the social media conversations a sign that the DOGE faithful are again interested and optimistic. Elon Musk sometimes called the ‘Dogefather’ is still a key player in influencing investors’ sentiment around Dogecoin. Brandt stated:
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“In Musk we trust.”
Elon Musk’s Vocal Support: A Key Driver of Dogecoin’s Price Spikes
Historically, Musk’s vocal support of Dogecoin, combined with his musings on the official cryptocurrency account of what he does, what he thinks, and what he sees have spurred DOGE to what has become one of the more significant price spikes.
Dogecoin’s reappearance in the spotlight comes at a time when U.S. president elect Donald Trump announces the creation of his new Department of Government Efficiency (DOGE). In addition to Musk and billionaire entrepreneur Vivek Ramaswamy’s lead, this initiative has further worked to promote Dogecoin’s visibility and popularity on mainstream trading platforms amongst retail traders.
After a rich and recent history playing a supporting role to somewhat ‘cool’ cryptocurrencies such as Litecoin, Bitcoin Cash or Stellar, Dogecoin’s time might finally have come to shine. Brandt’s analysis fits the pattern of other market speculations that DOGE could see a huge run in 2025, mirroring the Bitcoin run in 2017.
Back then, it also corresponded to the time when Bitcoin attained brand new highs, as it was shaken through a series of technical corrections reminiscent of what Brandt is suggesting along with what Dogecoin’s price chart is currently going through. If DOGE follows history and its crypto prices keep climbing at the same pace as Bitcoin’s, the meme coin could make nice gains in the near future.
Conclusion
Dogecoin’s rise from retail trader support, chart patterns, and Elon’s influence bode well for a bright future for Dogecoin. Short term corrections are to be expected but the cryptocurrency’s classical charting principles and how it resembles to Bitcoin’s historical trajectory argues a case for a rally. Dogecoin has once again shown its flexibility in the crypto market in the current race, with increasing social media attention and high profile endorsements.
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