-->The recent developments regarding the Dogecoin price are very similar to what we saw around the end of 2020. At the time, the memecoin rebounded from a bear market and then started a rally that ended with an increase of about 1,000 percent in 2021.

The Dow Theory and Dogecoin

According to CoinDesk analysts, the so-called Dow Theory is a core principle of the financial world. The Dow Theory states that price trends of financial assets are characterized by repetition.

As investing legend Mark Twain once said, “History never repeats itself, but it often rhymes.”

Experienced traders therefore spend a lot of time detecting certain patterns in price action, to discover whether they can possibly recognize old price patterns.

Dogecoin recently managed to rise above its 50-, 100- and 200-week averages. In doing so, it managed to end a bear market consolidation that lasted as long as 20 months.

Also, the 50-week simple moving average has risen above the 100-week variant, which is normally a bullish signal for the price of a financial asset.

Comparison with 2020

Both of these developments are similar to the end of 2020. At that time, Dogecoin started an explosive rally that would continue during the first five months of 2021.

There are striking similarities between DOGE's price movements today and before the onset of the previous bull market in early 2021. (TradingView)

What’s funny is that from the second half of 2019 and through the end of 2020, we saw a similar 20-month bear market consolidation. Ultimately, this resulted in gigantic price explosions that ended with a total increase of 3,600 percent.

If the past rhymes with the present here, then it could be that Dogecoin is in for a good price period.

But of course it remains a memecoin without fundamental value. Be aware that investing in projects like Dogecoin is more about gambling than actual investing.

You have to hope that someone like Elon Musk will suddenly speak positively about the currency again and actually do something with it. So far, Musk has not done much to fundamentally improve the health of Dogecoin.

Dogecoin20 (DOGE20)

As a meme coin, DOGE has remained subdued over the course of this year, and while DOGE20 (Dogecoin20) is one of the alternatives to Dogecoin (DOGE), it has also failed to gain much volume. DOGE is only up 50% in the last 30 days, while other meme coins have risen much further. In creating Dogecoin20, an attempt has been made to unify some of the attractive features of Dogecoin and also overcome the problem of DOGE appearing worthless.

One earns DOGE20 through the process of passive holding without the energy-intensive Proof-of-Work (mining) that Dogecoin requires. Check out Dogecoin20!

Source: https://bitcoinmagazine.nl/nieuws/maakt-dogecoin-zich-weer-op-voor-een-2020-2021-rally



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