DOGE’s Parabolic Rally Potential: Will History Repeat?
- DOGE surged 440% and retraced 46% in 2024; if history repeats, a parabolic rally is possible.
- Around $250M in short liquidations at $0.3567; DOGE could rally if the price liquidates.
- Technical indicators like MACD indicate a short-term bearish trend for Dogecoin.
DOGE’s retracement could likely be a signal for a massive price rise. For the past week, the price of DOGE has declined by 21.87%, and in the past day, it has dropped by 0.75%, reaching a price of $0.314 at press time. Crypto analyst Ali Martinez, in an X post, pointed out that DOGE has gone up by 440% to $0.39547 in 2024 and has retraced by 46% to $0.22201. He highlighted that if history repeats itself, DOGE is up for another parabolic rally, surging by 20.170% to $17.94.
According to the analyst, in 2017, Dogecoin had a parabolic run, soaring 212% to $0.00042, retracting 40% to $0.00025, and then rallying 5000% to approximately $0.03500. Similarly, in 2021, it experienced another parabolic run, increasing 476% to $0.01142, pulling back by 56% to $0.00781, and then skyrocketing 12,000% to nearly around $0.11000. Based on historical trends, there is a chance for another parabolic rally with the possibility of the price reaching around $20.
Based on the DOGE exchange liquidity map on Coinglass, on a 7-day timeframe, the amount of short liquidation leverage is greater than the long liquidation leverage. At the price of $0.3567, there are about $250.71M short liquidations, and at $0.2722, there are long liquidations of $205.25M. If the price of DOGE increases and breaks through the $0.3567, short liquidations worth about $250M will be liquidated. This will help Dogecoin increase its price as liquidations help increase the upward momentum.
Source: CoinglassOn the Aggregated Orderbook Liquidity Delta, the total bid volume is larger than the ask volume. Bids amount to $9.78M, and Asks are at $8.24M. This indicates a strong demand for Dogecoin at current price levels, potentially indicating a bullish run as the buyers outnumber the sellers.
Musk’s ‘Dogefather’ Post Goes Viral; Hints DOGE Price SurgeAt the time of writing, Dogecoin is trading at $0.3181, with a market cap of $46.85B and a 24-hour volume of $4.11B. The RSI value of DOGE is 36.42, which indicates a neutral momentum, and the MACD points to a bearish trend. Although the technical indicators suggest a bearish outlook in the short term, this is temporary, as the price of the coin could increase drastically with the recovery of the market.
Although DOGE is experiencing a short-term bearish trend, historical patterns, and liquidity indicators suggest a potential for price increase. With the increasing demand for Dogecoin at current prices and the potential for short liquidations adding upward momentum, the coin could see a powerful rally in the future.
The post DOGE’s Parabolic Rally Potential: Will History Repeat? appeared first on CryptoTale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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