Dogecoin (DOGE) investors are experiencing déjà vu as the popular meme coin undergoes a dramatic 66% price correction from its December 2024 peak. While this sharp decline has rattled many holders, historical data suggests this pullback could be setting the stage for an explosive rally, similar to previous whale accumulation patterns.
Historical Pattern Reveals Bullish Potential
According to crypto analyst Trader Tardigrade, DOGE has demonstrated a consistent pattern of sharp corrections followed by dramatic recoveries. Since October 2022, two notable instances stand out:
- First Correction (Oct 2022 – June 2023): 64% decline followed by a 300% surge
- Second Correction (March 2024 – August 2024): 64% decline followed by a 500% rally
Current Market Dynamics
At present, DOGE is trading at $0.1587, down 8.62% in the last 24 hours. The broader crypto market sentiment has reached extreme fear levels, with indicators at a two-year low of 15. This bearish sentiment often precedes significant market reversals.
Price Targets and Potential Scenarios
Based on historical patterns, analysts project two potential scenarios:
- Conservative Scenario: 300% rally targeting $0.64
- Bullish Scenario: 500% surge reaching $0.96
Market Implications
The current correction aligns perfectly with previous patterns, suggesting DOGE could be preparing for another significant rally. Investors should monitor key support levels and broader market sentiment for confirmation of trend reversal.
Source: Bitcoinist