- Dogecoin’s On-Balance Volume (OBV) mirrors the breakout pattern from ahead of its spectacular outperformance against Bitcoin sometime later in 2024.
- The current consolidation along with OBV increase is indicative of aggressive buying, setting up Dogecoin for a possible strong upsurge against Bitcoin shortly.
- The price squeeze combined with OBV surge makes the bullish formation even stronger, indicating Dogecoin may again outperform Bitcoin considerably
The On-Balance Volume (OBV) chart pattern of Dogecoin/Bitcoin ($DOGE/$BTC) is replicating the formation that was present when Dogecoin delivered its huge outperformance of Bitcoin from October through December 2024. This chart pattern implies that Dogecoin might be due for another huge upsurge.
Dogecoin/Bitcoin Chart Shows Repeating OBV Pattern
Trader Tardigrade pointed out that the recent OBV pattern on the Dogecoin/Bitcoin chart bears a striking resemblance to the structure marked previously when Dogecoin surpassed Bitcoin towards the end of 2024. The pattern was preceded by a consolidation period in mid-2024, a strong OBV break, as well as a resultant pop in Dogecoin’s price compared to that of Bitcoin.
Currently, Dogecoin is going through a similar period of low volatility and price compression, which is framed by a tight range. After this phase, the OBV indicator is once again showing an upward movement, signaling a potential accumulation phase and a forthcoming breakout.
Key Signs of a Potential Dogecoin Breakout
The OBV breakout seen earlier, combined with an uptick in price, suggests that buyers are stepping in aggressively, much like before. The structure, which includes a previous decline a flattening of OBV, and the recent upward shift, mirrors the setup that led to Dogecoin’s previous major price rally against Bitcoin.
With price action as well as OBV indicators confirming, the setup appears ready for a bullish surge again for Dogecoin. This dual validation from both price form and volume action improves the chances of a steep rally that can again place Dogecoin at the center of attention.
Will History Repeat Itself for Dogecoin?
The OBV breakout, combined with a price surge, creates a compelling case for Dogecoin to take center stage. History seems to be repeating itself, with similar volume pressure building before a major rally.
With OBV increasing, Dogecoin’s strength is poised to gather momentum, which makes it the right time for market players to follow the $DOGE/$BTC pair. If history is a guide, a strong rally for Dogecoin is due.
