Dogecoin (DOGE) Mimics 2021 Pattern, Accumulation Phase Ends, Promises 7X Returns: Here's What the Data Indicates

Like most cryptos, Dogecoin [DOGE] was also enjoying a comfortable bull rally. However, things could get even better, as the meme coin seemed to be mimicking a pattern that it followed in a previous cycle.

After a stellar performance last week, Dogecoin [DOGE] bulls might be in for a treat, as a seven-fold price increase might be on the cards for the meme coin.

Here’s how it could happen

As far as meme coins go, it doesn’t get bigger than Dogecoin (DOGE). Especially after the coin’s mascot, Elon Musk, took over Twitter and integrated several crypto features into the platform.

After a dull 2023, meme coins finally had their moment last week. Several meme coins, including DOGE, enjoyed a comfortable bull rally, fueled by a collective narrative.

However, things could get even better, as DOGE might be setting up for a massive bull rally, if a key pattern repeats itself.

DOGE might repeat history

According to CoinMarketCap, DOGE bulls bucked up last week as the meme coin’s price surged by more than 12%. The bull rally was nowhere from stopping as DOGE’s price increased by over 4% in the last 24 hours.

At the time of writing, DOGE was trading at $0.1724 with a market capitalization of over $29.4 billion.

In the meantime, Mags, a popular crypto trader and analyst, posted a tweet highlighting an interesting development.

Per the analyst, the accumulation phase has ended for Dogecoin, which is the precursor to a massive bull rally. In fact, the possible bull rally might allow DOGE to increase its price by sevenfold.

Notably, this wasn’t the first time DOGE was acting like this. Mags’ tweet also pointed out a similar trend during DOGE’s last cycle in 2021.

During that time, the end of DOGE’s accumulation phase triggered a bull rally, causing DOGE’s price to increase 170 times.

DOGE’s on-chain metrics support further price increase

AMBCrypto then analyzed Dogecoin’s on-chain data to see whether it also hinted at a continued price increase.

As per our analysis, Whale Activity around DOGE remained high throughout the last week as its whale transaction counts increased. Its MVRV ratio increased, hinting more investors were in profit.

Its Velocity also remained up, meaning that DOGE was being used more often in transactions within a set timeframe.

After a sharp decline, Dogecoin’s Weighted Sentiment improved, suggesting a rise in bullish sentiment.

However, there were chances of DOGE witnessing a price correction soon. At press time, DOGE’s fear and greed index had a value of 64%, meaning that the market was in a “greed” phase.

Whenever the metric reaches that level, it indicates that bears might step in and push an asset’s price down. Nonetheless, market indicators remained bullish on the meme coin.