- DOGE was at a crucial juncture, with the $0.20 resistance level in focus.
- This price movement is drawing parallels to the 2017 bull cycle.
With a 32.25% spike in volume across the memecoin market, Dogecoin [DOGE] has surged 5%, now nearing the key $0.20 resistance level.
This price action is drawing strong parallels to the 2017 bull cycle, as traders anticipate a potential breakout. A strong push above $0.20 could ignite a rally, while failure to hold this level might trigger a pullback.
Back in 2017, DOGE experienced a 115-day pause between two explosive pumps, ultimately surging 112% by year-end.
Now, with the pause stretching to 119 days, the RSI is mirroring that same “extremely” oversold condition, signaling the potential for a strong repeat rally.
Source: TradingView (DOGE/USDT)
Notably, the DOGE/BTC pair has been in a slump for over a week, but the MACD has flipped bullish. Investors are likely leaning into the “high-risk, high-reward” appeal of memecoins, with DOGE’s 5% surge validating this shift.
With volume up 65.87% to $1.35 billion, bulls seem to be accumulating on the dip, indicating a potential exhaustion of selling pressure.
Will DOGE hold this trend in the long run?
For memecoins like DOGE, social volume is a key driver, with price movements often fueled by “hype”.
Yet, despite the memecoin’s consolidation, oversold RSI, and bullish historical trends, its Weighted Sentiment has shifted negatively.
Source: Santiment
At the time of writing, the meemcoin was trading 64% below its post-election peak of $0.48, with little FOMO evident in the market.
Over the past eight years, the memecoin space has become crowded, making it harder for DOGE to recreate the community-driven excitement that fueled past rallies.
The lack of FOMO and minimal whale accumulation at current prices casts doubt on the possibility of a 2017-style parabolic rise without significant market changes.
However, the DOGE/BTC pair shows bullish signs, and rising volume indicators point to potential short-term price action.
At present, DOGE appears more suited for speculative quick gains rather than long-term growth prospects.
