Dogecoin (DOGE), the largest memecoin in the world, is experiencing a remarkable breakout, up 62% this week and recording the most impressive performance since February.
The weekly price chart analysis of DOGE shows that this cryptocurrency is recreating the pattern from late 2020, when the price surged 1,500%, reaching a peak of $0.73 in early May 2021. DOGE's latest growth occurred right after the U.S. presidential election and a year of sideways accumulation, similar to trends seen in late 2020 and 2016.
The 50-week simple moving average (SMA) is approaching a crossover above the 100-week SMA – an important technical signal that could trigger a strong upward trend for traders following market momentum. A similar bullish crossover occurred right after the November 2020 U.S. election.
If history repeats itself, DOGE may continue to rise in the coming weeks, with the potential to surpass the $0.73 peak of 2021.
Many other indicators also reinforce this positive outlook. For example, the 14-week relative strength index (RSI) has crossed above 70, signaling strong bullish momentum. This level marked the FOMO (fear of missing out) phase during the breakout growth in 2021.
DOGE seems to be perfectly repeating the 2020 pattern | Source: TradingView/CoinDesk
However, it should be noted that memecoins often fluctuate more violently than major coins like BTC and ETH, easily reversing suddenly. Therefore, traders need to continuously monitor their positions and strictly apply risk management tools such as stop-loss strategies.
Source: https://tapchibitcoin.io/dogecoin-tang-62-tuan-nay-mo-hinh-y-het-nam-2020.html
