Dogecoin is starting to stabilize above the $0.16 level again, as shown by its price action in the past 48 hours. As it stands, bulls of the meme coin are trying to reverse the downtrend that began earlier this month, which saw its price pull back to $0.146 early last week. 

However, although current sentiment may seem sluggish, a look at historical trends suggests that the recent pullback could be the calm before an explosive continuation. Interestingly, technical analysis shows that Dogecoin might be on track to valuations above $20 if it repeats one of its previous cycle trends. 

Potential 120X Dogecoin Rally Above $20+

An analysis shared on X by crypto analyst Javon Marks takes a look at Dogecoin’s cyclical nature and price playout in previous cycles to predict its future movement for the current cycle. By mapping Dogecoin’s 12-day candlestick chart, the analyst identified three distinct phases of accumulation followed by massive growth: the 2017 rally, the massive 2021 bull run, and what appears to be the early-to-mid stages of the current cycle. 

Each of the previous cycles began with months of sideways or slightly upward movement before finally going into parabolic gains. This pattern, which first took place in 2017, not only repeated in 2021 but ended up with larger returns and started from a higher base.

As shown in the chart below, Dogecoin surged by about 90X from its accumulation range in 2017. That was followed in 2021 by a bigger 306X rally that pushed DOGE into the mainstream and end

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Author: Scott Matherson