Will Dogecoin’s 119-day pause lead to a 2017-style rally?

• DOGE was at a crucial juncture, with the $0.20 resistance level in focus.
• This price movement is drawing parallels to the 2017 bull cycle.

With a 32.25% spike in volume across the memecoin market, Dogecoin [DOGE] has surged 5%, now nearing the key $0.20 resistance level.

This price action is drawing strong parallels to the 2017 bull cycle, as traders anticipate a potential breakout. A strong push above $0.20 could ignite a rally, while failure to hold this level might trigger a pullback. 

Back in 2017, DOGE experienced a 115-day pause between two explosive pumps, ultimately surging 112% by year-end. 

Now, with the pause stretching to 119 days, the RSI is mirroring that same “extremely” oversold condition, signaling the potential for a strong repeat rally.

Notably, the DOGE/BTC pair has been in a slump for over a week, but the MACD has flipped bullish. Investors are likely leaning into the “high-risk, high-reward” appeal of memecoins, with DOGE’s 5% surge validating this shift.

With volume up 65.87% to $1.35 billion, bulls seem to be accumulating on the dip, indicating a potential exhaustion of selling pressure.

Will DOGE hold this trend in the long run?

For memecoins like DOGE, social volume is a key driver, with price movements often fueled by “hype”.

Yet, despite the memecoin’s consolidation, oversold RSI, and bullish historical trends, its Weighted Sentiment has shifted negatively.

At the time of writing, the meemcoin was trading 64% below its post-election peak of $0.48, with little FOMO evident in the market.

Over the past eight years, the memecoin space has become crowded, making it harder for DOGE to recreate the community-driven excitement that fueled past rallies.

The lack of FOMO and minimal whale accumulation at current prices casts doubt on the possibility of a 2017-style parabolic rise without significant market changes.

However, the DOGE/BTC pair shows bullish signs, and rising volume indicators point to potential short-term price action.

At present, DOGE appears more suited for speculative quick gains rather than long-term growth prospects.