Elon Musk's Moves and Dogecoin's 2024 Price Prospects

Observing Dogecoin's recent price trends, some analysts find similarities with a pattern from 2020 that led to a significant increase in its value. Back then, Dogecoin's worth amplified 15,800% in just half a year, achieving an all-time high price of 76 cents.

Comparing Dogecoin's Price Movements: 2024 Might Echo 2021 Gains

The chart below shows Dogecoin's price moves, drawing parallels between its current behavior and the rise following the bear market of 2018-2020. 

Previously, Dogecoin's value hovered between $0.0012 and $0.0056, a phase denoted by minimal market changes and stable prices.

Source : Trading View

In recent times, Dogecoin has been in another phase of minimal price changes but at a higher range of $0.055 to $0.181. These new levels also correspond with key Fibonacci retracement lines, suggesting a certain pattern.

Dogecoin now aims to cross the significant 0.236 Fibonacci line, and maintaining a price above $0.181 could indicate a change in market sentiment, hinting at potential growth.

Factors that Influenced Dogecoin's Price in the Past and May Again in 2024

Two years ago, financial strategies like quantitative easing were crucial in boosting Dogecoin's value. Currently, we're seeing a similar environment that could lead to another price boom, including potential rate cuts in 2024.

Insights into Bitcoin Halving and Dogecoin's Price Surge

Past Bitcoin halving events, which decrease the rewards for mining new Bitcoin by half, have also positively impacted Dogecoin's price. 

For instance, Dogecoin increased 34,300% after Bitcoin's third halving in 2020. With the fourth Bitcoin halving coming up around April 19-20, 2024, Dogecoin might repeat history and see significant gains.

Elon Musk Fuels Dogecoin's Ascent with Possible Mainstream Adoption in 2024

As Dogecoin positions for potential growth in 2024, much attention is drawn to Elon Musk's influence. Known for his support during 2020 and 2021, Musk significantly contributed to Dogecoin's price spike and prominence amongst top cryptocurrencies. In a recent development, Musk has hinted at future plans to incorporate Dogecoin within mainstream businesses.

On March 14th, Musk mentioned the prospect of Tesla, his electric car company, accepting Dogecoin for vehicle purchases. This move could pave the way for broader use of the coin.

Additionally, the X app, formerly known as Twitter and currently run by Musk, looks to integrate a payment system called XPayments. Anticipated to launch by mid-2024, it's expected to support various currencies, possibly including Dogecoin, expanding its usability and potentially driving demand.

Technical Outlook for Dogecoin's Price

Inspecting Dogecoin's weekly technical chart, the relative strength index has hit above 70, usually a sign that an asset might be overbought and could face price corrections or stabilize.

Yet, if Dogecoin successfully breaks above the 0.236 Fibonacci level, we could see a rise of about 35% from today's value, taking it near the $0.26 mark. This event might unfold towards the end of April.On the flip side, failing to go beyond the 0.236 Fib line could lead to a drop in Dogecoin's value, potentially reaching its 50-week exponential moving average at approximately $0.095, roughly a 48% decrease from its current price.