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The Dogecoin price is starting to reverse some of its gains from last week. At the time of writing, the Dogecoin price is down 9% in 24 hours, but it is a good place to reverse these losses very quickly.
This is especially the case with Dogecoin still on track to end the month with a very long bullish candle. Particularly crypto analyst Trader Tardigrade emphasizes this phenomenon for the Dogecoin price on social media platform
Dogecoin price to make higher monthly close
Breaking the previous highest monthly close may seem like a routine move during bullish rallies for some cryptocurrencies, but for Dogecoin it signals something much more important. Historically, every time the Dogecoin price exhibits this phenomenon, it has always been the start of a stronger rally.
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Interestingly, this event has been rare in Dogecoin’s 11-year history, making it even more impactful when it does happen. What’s more interesting is that when it does occur, it has always gained more than 1,000% in just a few months.
The last time the Dogecoin price closed above its highest monthly close was in 2021, ultimately leading to a rise of over 8,000% in about four months. This increase led to the current Dogecoin all-time high of around $0.732.
Prior to the 2021 rally, a similar breakout occurred in 2017. This earlier example produced an impressive 1,000% increase over the course of eight months.
What does this mean, the DOGE?
Given these historical patterns, we might as well look forward to a repeat of a strong rally in the coming months. According to price data, the current highest monthly Dogecoin price is $0.35 in August 2021.
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At the time of writing, the Dogecoin price is on track to reach a new monthly high in November. If history were to repeat itself, we could see Dogecoin rise between 1,000% and 8,000% in the coming months. Such a trend would not only be significant for Dogecoin investors, but could also have broader implications for other cryptocurrencies in the meme coin market.
As Trader Tardigrade has noted, a repeat of the first 1,000% event would see Dogecoin reach $3.6 in July 2025. On the other hand, a repeat of the extraordinary case of 8,000% would ensure that would see Dogecoin reach $26.9 by March 2025. Even a price movement between these two scenarios would yield a substantial return.
At the time of writing, Dogecoin is trading at $0.372. Although Dogecoin has recovered about 9% in the past 24 hours, Dogecoin is still up 140% since early November.
Featured image created with Dall.E, chart from Tradingview.com
Credit : www.newsbtc.com
