Author: Biraajmaan Tamuly, CoinTelegraph; Translated by: Bai Shui, Jinse Finance
Doge is one of the best performing currencies in November, and its momentum has accelerated after Donald Trump, the president-elect, won the US election. Doge has risen 229% in the past 30 days.
The best performing crypto assets in 30 days. Source: CoinGecko
The market structure of this meme coin underwent a significant change at $0.37, which had previously occurred in October 2021. If Doge repeats its historical pattern, its price ceiling could be much higher after a significant change in the short term.
Doge Presents a "Classic" Head and Shoulders Pattern
Veteran trader Peter Brandt has frequently analyzed Doge's price movements in recent weeks. In his latest X post, the trader claimed that Doge is exhibiting an "excellent chart market that follows classic chart principles".
Peter Brandt's analysis of the 1-week Doge chart. Source: X.com
Brandt explained that Doge also exhibited a similar sideways accumulation zone in 2020, then formed a head and shoulders (H&S) pattern. In 2024, the weekly Doge chart followed the same path, and broke out of the current inverse H&S pattern, leading to a 190% price increase.
Mikybull's analysis of the 1-week Doge chart. Source: X.com
Meanwhile, economist and crypto trader Mikybull continued to discuss the potential "implications" of the prevailing golden cross on Doge's weekly chart. Although Doge has risen nearly 7,000% in 2021, according to the law of diminishing returns, traders expect the market peak of this meme coin to be around $3 to $4, or 1,136%.
Doge Has Retested $0.39
On December 12, Doge's price reached a high of $0.44, but immediately saw a 22% correction to $0.34 on the subsequent 4-hour chart. Since then, the momentum of the meme coin has slowed down, fluctuating between $0.44 and $0.34.
However, after Donald Trump officially announced the establishment of the Department of Government Efficiency (D.O.G.E) led by Elon Musk and Vivek Ramaswamy, the market expects a bullish reaction.
Crypto trader Jacob Canfield believes that the lack of reaction could "signal a period of broader selling".
From a technical perspective, Doge's immediate area of focus is between $0.30 and $0.326 (green box), where a fair value gap (FVG) has formed on the 1-day chart.
Doge 4-hour chart. Source: TradingView
Below the $0.30 level, there is an order block between $0.272 and $0.297 (yellow box) on the 4-hour chart. This order block coincides with the 50-day moving average level, which could provide additional support for a price recovery.
