Dogecoin Retests 100 SMA: Will Past Trends Lead to Another Strong Breakout?

• Dogecoin has continuously recoiled from the 100 SMA, showing solid previous support before significant price activity.
• 100 SMA has been an important level for Dogecoin, often generating breakouts after periods of deep consolidation.
• Dogecoin’s price action shows that defying the 100 SMA daily tends to create sharp rallies and fresh momentum.

Dogecoin’s price movement continues to interact with the 100-week simple moving average (SMA), reflecting past trends of strong breakouts. The cryptocurrency previously tested this level before experiencing major price rallies, making its recent touch on the 100 SMA a development.

Historical Interaction with the 100 SMA

Dogecoin’s price history shows several consolidation and breakout events after running into the 100 SMA.  Before it took off and started an upward trend in 2017, the price was below the moving average.  Similar patterns were seen in 2020, when Dogecoin was heading towards the 100 SMA before going on a remarkable rally that lasted well into 2021.

Tracking the market behaviour, before uptrends, the price fluctuated and returned to the 100 SMA in 2022 and 2023. The repeated interactions suggest a strong reliance on this technical indicator as a support level before price acceleration occurs. Each consolidation phase near this moving average has preceded notable surges.

Recent Market Developments

Technical analyst Trader Tardigrade observed that Dogecoin has again reached the 100 SMA in 2024. Previous movements indicate that when the price touches this level, strong upward momentum tends to follow. The time frame also includes green markers at key points where the cryptocurrency successfully rebounded from the SMA.

Source: Traer Tardigrade

Tardigrade note that purple markers denote resistance points where the price temporarily stalled before establishing a clear trend direction. Each time the price approached the moving average, it demonstrated accumulation phases before initiating breakouts. Historical patterns indicate that this level plays a crucial role in market movements.

Market Outlook

Dogecoin’s current mo vemen t aligns with its historical pattern, where testing the 100 SMA precedes a potential price increase. The market previously witnessed prolonged consolidation at this level before breakouts occurred. If the pattern holds, the cryptocurrency could see another strong uptrend.
Market participants continue monitoring Dogecoin’s price behavior to determine whether the historical correlation with the 100 SMA remains intact. They note that future price action will confirm whether another rally follows this latest test of the moving average.