Dogecoin Drops 30%—Is It a Comeback in 2021 Style?

Dogecoin — DOGE, has fallen 30%, but there is something strangely familiar. The price may drop, but the structure looks odd like the calm before past storms. Back in 2021, DOGE made a historic leap—and before that happened, the chart looked like this. Does the current silence mean another surprise is brewing? The market hasn't screamed yet, but smart money may have moved behind the scenes.

History may repeat itself soon DOGE ended the year 2024 with a 287% increase, closing the year at $0.31. That spike may not be significant, but it has garnered attention. Retail traders have slowly returned. The memecoin has climbed back into the top 10 cryptocurrencies. Following that was a recent 30% price drop, pushing DOGE below the critical $0.20 level. At first glance, that seems troubling. But when you zoom out, it starts to look strategic. Analysts believe that this drop may not signal weakness. Instead, they see accumulation - buying cautiously as weaker hands exit. The history of Dogecoin supports that idea. Before increasing by 5,000% in 2017 and exploding by 21,000% in 2021, DOGE was moving sideways. For nearly a year in each cycle, the price remained the same. Then, suddenly, it exploded. Right now, the structure matches that exact setup. Additionally, Open Interest has dropped from $3 billion to $1.74 billion this month. That indicates that leverage has been exhausted, not confidence. As traders actively exit, space opens up for a healthier bull run. Accumulating revival signals on-chain The Exchange Supply Change index supports a bullish case. Since the beginning of June, DOGE has experienced a steady outflow of smart money from major platforms. This often indicates that investors are withdrawing tokens into private wallets rather than selling. Wallet activity provides additional clues. Active DOGE addresses have surged to 118,000—up from below 80,000. Such an increase rarely occurs during a true capitulation phase. Dogecoin may not have reached its peak yet, but the signs do not indicate doom. The current phase may mark a reset, not a collapse. The market is absorbing the shock, allowing retail panic to subside and larger players to get involved. If DOGE holds above the key support level and speculative pressure remains low, history could repeat itself. The setup shows potential. Liquidity has been wiped out. Exchange supply continues to shrink. On-chain data is turning bullish. DOGE may be writing a familiar story—again. Dogecoin is not dead. It's resting, probably curling up for another blow to the moon. While the price is falling, the structure is consolidated. Patients can win this round. If previous cycles are any indication, today's DOGE silence could explode into tomorrow's roar.