Dogecoin (DOGE) has experienced a recent decline in value, losing 16.27% in the past month. However, a historical trend suggests that May could present an opportunity for the memecoin to recover some of its losses.
In previous years, DOGE has shown positive returns in the fifth month. For example, in May 2021, the coin surged from $0.33 to over $0.52 in just one month. Similar performance was observed in 2017 and 2019. Unfortunately, in 2022, DOGE was unable to replicate this trend due to a bearish phase caused by the Terra Luna (LUNA) crash.
Considering the recent Bitcoin (BTC) halving and its impact on DOGE, it is worth noting that the memecoin did not experience significant movement until seven months after the previous halving event. If history repeats itself, DOGE may not witness a major rally in May 2024 and instead wait until November to soar, similar to its impressive performance in 2021.
However, historical patterns alone should not be the sole determinant of price action. On-chain analysis is crucial in evaluating potential trends. Comparing current volume to previous rally periods, DOGE’s volume stands at $958.76 million, significantly lesser than the volume during its peak in 2021, which exceeded $42 billion.
Therefore, for DOGE to initiate a bull run next month, the volume needs to increase between 3 to 5 times from its current level. Failure to do so could result in a month of modest gains or sideways movement.
The presence of numerous memecoins sharing liquidity with DOGE may also impact its performance. While this could drive the price upward, particularly in a highly bullish market scenario, price targets may be conservative, ranging between $0.18 and $0.22.
Despite this, DOGE still holds potential as a cryptocurrency in the current market cycle. If the broader market condition shifts from consolidation to a bullish zone, DOGE could surpass $0.50 in the mid-term.
However, it is important for traders to exercise caution and not solely rely on short-term forecasts. Instead, a comprehensive analysis of market conditions and trends is essential in making informed investment decisions.
Dogecoin (DOGE) has been experiencing a decline in value, losing 16.27% in the past month. However, history suggests that May could bring a potential recovery for the memecoin. In previous years, DOGE has shown positive returns in the fifth month, with significant surges observed in May 2021, 2017, and 2019.
One key factor to consider is the impact of the recent Bitcoin halving on DOGE. It is worth noting that DOGE did not experience significant movement until seven months after the previous halving event. If this pattern continues, DOGE may not witness a major rally in May 2024 and instead wait until November to soar, similar to its impressive performance in 2021.
However, historical patterns alone should not be the sole determinant of price action. On-chain analysis is crucial in evaluating potential trends. Currently, DOGE’s volume stands at $958.76 million, significantly lower than its peak volume in 2021, which exceeded $42 billion. To initiate a bull run next month, DOGE’s volume needs to increase between 3 to 5 times from its current level. Without this increase, the coin may only experience modest gains or sideways movement.
The presence of numerous memecoins sharing liquidity with DOGE may also impact its performance. While this could drive the price upward, particularly in a highly bullish market scenario, price targets may remain conservative, ranging between $0.18 and $0.22.
Despite these challenges, DOGE still holds potential as a cryptocurrency in the current market cycle. If the broader market conditions shift from consolidation to a bullish zone, DOGE could surpass $0.50 in the mid-term. However, it is essential for traders to exercise caution and not solely rely on short-term forecasts. Conducting a comprehensive analysis of market conditions and trends is vital in making informed investment decisions.
For more information on Dogecoin and its market trends, you can visit CoinDesk.