DOGE is displaying early indications of a breakout setup following a 287% surge in 2024, with consistent accumulation despite recent downturns.

Dogecoin Echoing Past Patterns

Dogecoin [DOGE] is following the patterns observed in the previous two cycles, both of which preceded significant rallies.

Could this be laying the foundation for its next breakout?

While the price is still far from its 2021 breakout highs and has dropped approximately 30% from just a month ago, the overall picture looks familiar.

In both the 2016–17 and 2020–21 cycles, DOGE traded sideways for about a year before embarking on massive rallies.

Although it has not reached the levels of 5,000% in 2017 or 21,000% in 2021, the setup appears similar.

287% Surge and Quiet Accumulation

DOGE ended 2024 at $0.31, registering a 287% annual increase and reentering the top 10 crypto assets.

This move reignited retail speculation and triggered fresh FOMO, albeit subtly.

DOGE is not surging to new highs yet, but it is holding steady. Despite a 30% decline and a challenging macro environment, its resilience is notable, particularly for a memecoin.

According to AMBCrypto, this could indicate strategic accumulation beneath the surface, hinting that bulls may be setting the stage for a familiar breakout structure.

DOGE's Current Position

A month ago, DOGE's Open Interest was around $3 billion. Currently, it has dropped to $1.74 billion.

This decline coincided with DOGE falling below the crucial $0.20 support level.

If spot demand returns at these levels, it could signal a healthy reset, following a significant liquidity squeeze characterized by aggressive deleveraging and a volatile macro environment.

Additionally, Dogecoin's 30-day Exchange Supply Change turned negative in early June, indicating consistent outflows from major exchanges.

Continued net outflows from major exchanges suggest that supply is moving off-market, implying strategic accumulation and bullish intent.

Moreover, Active Addresses increased to 118,000 this week, up from below 80,000 in mid-June, indicating a notable on-chain recovery.

Considering these factors, DOGE's 30% monthly decline may be viewed as a strategic accumulation phase rather than a capitulation. The spot market could be gearing up to absorb what the derivatives market has shed.

Potential Repeat Cycle

If DOGE maintains key support levels, sustains low speculative pressure, and sees increased retail and whale accumulation, the possibility of a structurally similar breakout pattern seems plausible.