Dogecoin follows ‘classical charting principle’ which hints at 1,000%+ DOGE rally

Dogecoin (DOGE) has been one of the top performers in November and the rally gained speed after President-elect Donald Trump’s victory in the US elections. Over the past 30 days, DOGE gained 229%.

The memecoin’s market structure has undergone a significant shift at $0.37, previously witnessed in October 2021. With a major turnaround in the short term, the price ceiling could be much higher for DOGE if it repeats its historical pattern.

DOGE exhibits “classic” inverse head-and-shoulders pattern

Peter Brandt, a veteran trader, has frequently analyzed Doge’s price action over the past few weeks. In a recent X post, the trader claimed that DOGE has exhibited “an outstanding charting market following classical charting principles.”

Brandt explained that Dogecoin demonstrated a similar sideways accumulation range in 2020 before forming an inverse head-and-shoulders (H&S) pattern. In 2024, DOGE’s weekly chart followed the same path, and a bullish break from the current inverse H&S pattern led to its 190% price rally.

Meanwhile, Mikybull, an economist and crypto trader, continued to address the potential “implication” of a golden cross that prevailed on Dogecoin’s weekly chart. While Dogecoin rallied close to 7,000% in 2021, the trader outlined a market peak of around $3 to $4 for the memecoin, or 1,136%, based on laws of diminishing returns.

Related: Why are memecoins up today?

Dogecoin may retest $0.30

On Nov. 12, Dogecoin’s price reached a high of $0.44 but immediately exhibited a correction of 22% to $0.34 on the next four-hour chart. Since then, the memecoin’s momentum has slowed, oscillating between $0.44 and $0.34.

However, the market anticipated a bullish reaction after Donald Trump officially announced Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (D.O.G.E), which has the same acronym as the memecoin.

Jacob Canfield, a crypto trader, believed that a lack of reaction might “spell a broader sell-off” period.

From a technical standpoint, Dogecoin’s immediate area of interest lies between $0.30 and $0.326 (green box), where a fair value gap (FVG) has formed on the 1-day chart.

Below the $0.30 level, an order block between $0.272 and $0.297 (yellow box) on the 4-hour chart is present. This order block draws a confluence with the 50-day EMA level, which may provide additional support for price recovery.

Related: Trump taps Elon Musk and Vivek Ramaswamy to slash gov’t with ‘DOGE’