Date: Thu, Jan 23, 2025, 04:11 AM GMT
In the cryptocurrency market this week, the first-ever memecoin, Dogecoin (DOGE), has witnessed major milestones. Earlier on Tuesday, January 21, asset manager REX Shares filed for a DOGE ETF, marking an important step toward integrating Dogecoin into mainstream financial products. Today, Bitwise, an investment firm focused on the cryptocurrency and blockchain space, officially filed its own Dogecoin ETF.
Source: @EricBalchunas (X)
Meanwhile despite these developments, the price of Dogecoin (DOGE) remains in the red amid ongoing market corrections. However, the long-term outlook appears to signal bullish momentum based on historical chart patterns.
Source: Coinmarketcap
Historical Patterns Indicate a Bullish Rally
According to crypto analyst @CryptoAnup , Dogecoin’s current price action mirrors historical patterns that previously led to explosive rallies.
Dogecoin (DOGE) Chart W Chart/ Source: @CryptoAnup (X)
Similarities with Past Movements: The provided chart shows Dogecoin forming descending triangles or consolidations before breaking out into massive upward rallies. This “wave structure” analysis highlights a repeating pattern of accumulation, breakout, and exponential gains.
Wave 2 to Wave 3 Formation: The chart reveals that Dogecoin’s ongoing consolidation phase resembles its earlier pre-breakout structure in 2020, which resulted in a sharp rally to new highs in 2021. The current triangle pattern suggests that DOGE is potentially on the verge of a similar breakout, forming what analysts call the “Wave 3” phase.
Potential Targets: If DOGE replicates the historical patterns, a strong breakout from the current structure could push its price to new highs around $3.50 and $4.0.
What’s Ahead?
The recent DOGE ETF filings by REX Shares and Bitwise could serve as a catalyst for broader adoption and renewed investor interest in Dogecoin. These institutional moves might bring greater legitimacy to DOGE, attracting new inflows into the market.
While the short-term price movement is influenced by market corrections, analysts remain optimistic about the long-term potential. If the historical patterns hold true, Dogecoin could witness another explosive rally in the coming months, driven by technical breakouts and increasing adoption.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
