Dogecoin (DOGE) has a history of tracking Bitcoin (BTC) price, and with the latter forming a fresh all-time high, the meme coin’s breakout is inevitable. Moreover, technical analysis and on-chain data show that if Dogecoin price follows historical patterns, a record high may be formed soon. Here are three reasons that support this bullish thesis and explain why DOGE may be in the early stages of a bull run.

Here’s Why Dogecoin Price Breakout Is Imminent

At press time, Dogecoin price trades at a weekly high of $0.24 with a 7.5% gain in 24 hours. Trading volumes were up by 68% in 24 hours according to data from CoinMarketCap, highlighting high market interest. As the market sentiment turns positive, the three reasons why a breakout to the upside is inevitable include:

Dogecoin Enters Last Stage of Its Bull Cycle

Dogecoin price is in the final stage of its bull cycle. Looking at the chart below, the price has been following a three-stage bull cycle since 2014. This cycle starts with a downtrend, a consolidation range, and then a bullish breakout.

DOGE started the downtrend stage in 2021, which comprised a sharp correction from the $0.73 all-time high. It has since been stuck within a tight consolidation range, but is now showing signs of breaking out.

During each bullish breakout, DOGE has made a key milestone. In 2017, the price erased one zero, and this also happened again in 2021. The next milestone for Dogecoin price is $1, and if history rhymes, DOGE may reach this price before the end of the year.

Mean Dollar Invested Age

Dogecoin’s Mean Dollar Invested Age is rising, and this is a bullish signal suggesting that most holders are choosing not to sell. This conviction supports a bullish Dogecoin price forecast if there is a spike in demand.

The metric has also been on a gradual rise since 2023, which was when the current bull cycle started, suggesting a gradual accumulation of the token since then. This surge confirms that a DOGE bull run is inevitable, and the price of the top meme coin may soon surpass its previous all-time high and aim for fresh highs.

Spike in Age Consumed Metric

Dogecoin’s age consumed metric has surged, and this adds to the reasons why Dogecoin price breakout is imminent. Looking at the historical trends, whenever this metric spikes, DOGE also tends to record a rebound, and if history rhymes, the ongoing rally will likely continue.

This spike also tends to show a local bottom to confirm that Dogecoin price will surge. If DOGE has indeed bottomed at a period when the broader market sentiment is highly bullish, an upward breakout is now imminent.

Therefore, by looking at the historical trends as well as the combination of bullish on-chain indicators, it is clear that a Dogecoin breakout is imminent and the price may soon reach new record highs.

Frequently Asked Questions (FAQs)

1. What factors will influence a Dogecoin price breakout?

2. What does the 3-stage bull cycle show about Dogecoin price?

3. How high will Dogecoin rally during the current bull market?