Dogecoin soared 23,000% in 2021 — Is history starting to repeat for DOGE price?
The price of Dogecoin (DOGE) has almost doubled after bottoming out at $0.0491 in June 2022, alongside a similar recovery across the cryptocurrency market.
On April 20, DOGE is trading for as high as $0.0942, up around 94% versus the last year's bottom. But, despite its impressive rebound, its price is still 88% below its all-time high of $0.76 set in May 2021. Thus, the DOGE/USD pair remains far from establishing a decisive bullish reversal on longer timeframes.
Dogecoin price soared over 23,000% in 2021 primarily due to Elon Musk's vocal support. Ironically, DOGE/USD topped after Musk called it a "hustle" during his Saturday Night Live appearance in May 2021.
DOGE price entered a prolonged long bearish cycle, furthered by the prospects of the Fed tightening (leading to actual interest rate cuts in 2022 and 2023). Also, the collapse of multiple leading crypto firms, such as Terra (LUNA), Three Arrow Capital, FTX, etc., exacerbated the DOGE selloff.
October 2022 saw a 100% price rebound despite the multi-month downtrend. The recovery coincided with Musk's shaky takeover of Twitter amid hopes that DOGE would become the social media platform's official payment token.
As of April 2023, Musk has not added a DOGE payment option on Twitter. Though, he briefly replaced the platform's iconic bluebird logo with Dogecoin's official mascot, the Shiba Inu meme, earlier in the month. DOGE rallied by up to 40% on the news.
From a fundamental perspective, speculation can help Dogecoin sustain its year-to-date gains. But the all-time high price is still 700% away, which is likely to happen only it receives wider adoption, such as for Twitter payments.
In fractal analysis terms, Dogecoin's bullish reversal prospects depend on holding above
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