The resurgence of a parabolic technical signal has Dogecoin holders howling for another moonshot, as it did prior to a remarkable 23,000% rally. During the previous crypto bull market, Dogecoin, fueled by meme mania and Elon Musk tweets, outperformed Bitcoin, Ethereum, and other altcoins.
Before the breakout in 2020, Dogecoin, which had spent over three years in a downtrend, touched the 1M Parabolic SAR on the USD trading pair. Shortly after this signal, Dogecoin experienced an extraordinary 23,000% rally, reaching its peak in 2021.
The Parabolic SAR, designed by J. Welles Wilder, Jr., is a technical indicator signaling potential trend reversals. In 2020, this signal marked the turning point before Dogecoin's significant uptrend. Now that the signal has been triggered again, speculation arises about the potential move for the meme coin.
Historically, after the Parabolic SAR was hit in 2017, Dogecoin rallied over 6,200%. Averaging this with the 23,000% surge from the more recent event suggests a possible 14,600% surge this time. Additionally, the Elliott Wave Principle suggests that the first wave of any cycle could be similar in magnitude to the final wave, hinting at another potential 6,200% return if an uptrend materializes from the current point. The Dogecoin community is eagerly watching to see if history repeats itself with another astronomical surge.
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