Dogecoin Drops 30%—Is a 2021-Style Comeback Loading?

DOGE experienced a 30% decline but mirrors its breakout structure from 2017 and 2021.

Exchange outflows and an increase in active addresses suggest strategic accumulation rather than panic selling.

Analysts speculate that a comeback reminiscent of 2021 might be quietly developing beneath the surface.

Dogecoin — DOGE, has seen a 30% price decrease, yet there's a sense of familiarity. While prices have fallen, the chart pattern bears a striking resemblance to the period preceding past surges. Recalling the historic surge of DOGE in 2021—and the patterns leading up to it—the current silence raises the question: could another surprise be on the horizon? The market isn't showing overt signs yet, but informed investors might be positioning themselves behind the scenes.

While attention is focused on the latest surges, $DOGE—the original memecoin—is quietly consolidating. Price action is forming a clear symmetrical triangle near $0.16, a pattern known to experienced traders as a precursor to volatility. A breakout from this pattern could trigger a rapid 50–60% increase. $DOGE…

History Might Repeat Soon

DOGE concluded 2024 with a 287% rally, ending the year at $0.31. This increase, while not heavily publicized, attracted attention and brought retail traders back into the fold. The memecoin subsequently climbed back into the crypto top ten. The recent 30% drop, which pushed DOGE below the critical $0.20 level, initially appears concerning. However, a broader perspective suggests a strategic move. Analysts propose that this decline might not indicate weakness but rather a period of accumulation—deliberate buying as less confident investors sell.

Dogecoin's past performance supports this idea. Prior to the 5,000% surge in 2017 and the 21,000% explosion in 2021, DOGE experienced prolonged periods of sideways movement. In each cycle, the price remained stable for nearly a year before suddenly erupting. The current structure mirrors this exact setup. Furthermore, Open Interest has decreased from $3 billion to $1.74 billion this month, suggesting a reduction in leverage rather than a lack of confidence. The exit of aggressive traders creates an opportunity for a more sustainable rise.

On-Chain Revival Signals Accumulation

The Exchange Supply Change metric reinforces the bullish argument. Since the beginning of June, DOGE has experienced consistent outflows from major exchanges, typically indicating that investors are moving tokens to private wallets rather than selling. Wallet activity provides additional insights. The number of active DOGE addresses has surged to 118,000—up from under 80,000. Such an increase is uncommon during a true capitulation phase.

While Dogecoin may not be poised for immediate gains, the indicators do not suggest impending doom. The current phase could represent a reset rather than a collapse. The market is absorbing the shakeout, allowing retail panic to subside and larger players to enter. If DOGE maintains its position above key support levels and speculative pressure remains low, history could repeat itself. The setup demonstrates potential: liquidity has been cleared, exchange supply is decreasing, and on-chain data is becoming more bullish.

DOGE might be repeating a familiar narrative—once again. Dogecoin is not finished; it is simply pausing, possibly preparing for another attempt at a significant rise. While the price has decreased, the underlying structure has strengthened. Patience may be rewarded in this instance. If past cycles are any indication, DOGE's current quietness could transform into a resounding surge in the future.