Dogecoin Reaches Support Level Against Bitcoin That Led To The Rally In 2021, Is A Repeat Possible?
Meme cryptocurrency Dogecoin is currently trading at an important support level against Bitcoin, a level that previously triggered its historic bull run in 2021. This significant observation comes from crypto analyst MasterAnanda, whose latest technical analysis on the TradingView platform highlights the potential for another major Dogecoin rally based on its performance against Bitcoin on the weekly candlestick timeframe.
Dogecoin Revisits Bull Market Support Zone Against Bitcoin
According to MasterAnanda, Dogecoin has re-entered what is described as its strongest historical support range when compared against Bitcoin on the weekly chart. Specifically, this zone, which is highlighted in blue on the weekly chart below, acted as resistance in early 2021 before the Dogecoin price surged to new highs and outperformed Bitcoin in the fifth wave of its bull run. After that 2021 rally subsided, the previous resistance transformed into support and held strong across multiple retests in the years since then.
The support area was initially tested in June 2022, followed by repeated confirmations in late 2023, early 2024, and again toward the end of 2024 as Bitcoin continued to outperform the rest of the crypto market and increased its dominance. However, Dogecoin rebounded at this blue zone each time it was retested, showing its validity as a key accumulation point and providing a solid foundation for any rally.
As it stands, Dogecoin’s price action against Bitcoin is exhibiting a higher low formation in the blue zone relative to past years, which is a bullish structural development. MasterAnanda expresses absolute confidence in this support zone, holding firm, labeling the current price level as “the best entry range possible” ahead of price action for the rest of the year.
What Could Happen Next For DOGE?
If Dogecoin repeats its previous bull cycle behavior, the current consolidation and accumulation phase could act as a launchpad to a significant upward trajectory. As such, DOGE could bounce above the blue support zone and outperform Bitcoin in the next months. This could be difficult, given that Bitcoin has received the most inflows from institutional traders and has dictated the entire market’s pace since late 2023. On the other hand, Dogecoin is becoming an increasingly popular choice among retail traders. All that’s needed is a bullish catalyst that could send inflows rushing into the meme coin.
The weekly Dogecoin/Bitcoin chart shared by the analyst highlights a clear Fibonacci extension pointing toward new all-time highs should DOGE’s price action follow this path and bounce upwards from the support zone. At the time of writing, the Dogecoin/Bitcoin pair is trading at 0.00000185. The 2021 all-time high is a 630% increase away at 0.00001350, meaning the meme coin has a lot of outperformance to do to return to its peak against Bitcoin.
At the time of writing, DOGE is trading at $0.162, up by 4.2% in the past 24 hours. Bitcoin is trading at $87,390, up by 3.8% in the same timeframe.
Featured image from Adobe Stock, chart from Tradingview.com
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