Dogecoin (DOGE) has been under intense bearish pressure, with its recent performance leaving investors concerned. Since reaching a yearly peak of $0.4341 on January 18, DOGE has been recording lower highs, losing nearly 25% over the past ten days. This persistent downturn has fueled negative sentiment around the meme coin. However, seasoned analysts like Ali Martinez caution against underestimating DOGE’s potential for sudden, explosive growth.
How do you bet against #Dogecoin $DOGE when, at any moment, it could surge nearly 900% in just 48 hours, like it did back in 2021? pic.twitter.com/hUg0uWkG3Z
— Ali (@ali_charts) January 28, 2025
Dogecoin’s History of Parabolic Rallies
Martinez points to Dogecoin’s remarkable 900% surge in January 2021 as a testament to its ability to defy market expectations. At that time, DOGE was trapped in a bearish phase, trading at $0.0073 on January 27, before skyrocketing to $0.0736 within 48 hours. The coin posted a staggering 340% intraday gain, proving that bearish consolidation phases can precede massive price spikes.
The current market conditions mirror those of early 2021, with Dogecoin experiencing extended downward pressure. Martinez believes that another historic rally could be on the horizon, urging traders not to bet against DOGE.
Market Cap Concerns: A Barrier to a 900% Surge?
Despite bullish projections, skeptics argue that Dogecoin’s current market cap of $48.48 billion could prevent such an exponential rise. In contrast, DOGE’s market cap was a mere $935 million during its 2021 rally, making it easier to trigger sharp price increases with a smaller capital influx.
However, Martinez dismisses this concern, highlighting that market cap is not the sole determinant of price action. He has previously drawn comparisons between XRP’s market cap and BlackRock’s $11 trillion in assets under management, suggesting that liquidity and market sentiment can override raw valuation metrics.
Could DOGE Reach $3?
While a 900% surge may seem ambitious, Dogecoin has already demonstrated its ability to post massive gains in a short timeframe. Following Donald Trump’s election victory, DOGE surged 159% to $0.4389 within a week. Analyst Scofield argues that a $3 price target is feasible, viewing it as a matter of time rather than speculation.
Also Read: Bitwise Files for Dogecoin ETF: Is DOGE the Next Big Crypto Investment?
As of press time, Dogecoin is trading at $0.3276, having recovered 2.82% today. If history repeats itself, DOGE could be on the verge of another meteoric rise.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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