Dogecoin (DOGE) is making headlines once again, with analysts buzzing over its potential for an incredible rally. One crypto expert has boldly predicted a staggering 5,202% upside for the meme coin, which has recently experienced a 45% surge in just 10 days. As market enthusiasts closely monitor DOGE’s next move, it’s clear that this iconic cryptocurrency is showing signs of life, leaving many to wonder if it can truly hit the predicted heights.
Current Market Dynamics
As of today, Dogecoin is priced at $0.1394, reflecting a modest 1.4% increase in the past 24 hours. This uptick may be closely tied to the recent volatility in Bitcoin, which has surged back above $67,000. The historical correlation between Dogecoin and Bitcoin during bullish cycles could be a significant factor in the latest price movement, as many believe that DOGE tends to follow Bitcoin’s lead.
A Look Back at Historical Performance
The crypto analyst’s bold claim isn’t without precedent. In the past, Dogecoin has delivered astronomical returns during bull markets. In 2017, it skyrocketed by 92 times, and during the 2021 bull run, it rose by a staggering 300 times. The analyst argues that the current cycle could mirror these explosive gains, especially since Dogecoin has been in a prolonged downtrend for 1,190 days, signaling that a breakout may be imminent.
Can DOGE Reach $7?
While the prospect of Dogecoin hitting $7.367 might seem far-fetched given its massive supply—capped at 5 billion new coins per year—the potential is still intriguing. If the 2024 bull run mirrors the trends of previous cycles and lasts until January 2026, Dogecoin’s supply could swell to 152.75 billion coins. This would give DOGE a market cap of approximately $1.125 trillion, a figure not out of reach considering Bitcoin’s historical market cap achievements.
In the grand scheme of things, this market cap would represent about 1.26% of the current global M2 Money Supply, which stands at a staggering $89 trillion. While reaching such heights remains speculative, it is not entirely outside the realm of possibility.
In the immediate term, Dogecoin is eyeing a target of $0.18. Recent technical analysis reveals that DOGE has successfully broken above both the 50-day and 200-day exponential moving averages (EMAs), signaling a bullish trend. This has led to the formation of a Golden Cross, a traditional bullish indicator that suggests further upside potential.
Also Read: Dogecoin Drops 5% And XRP Falls 4% As Bitcoin Stalls Below $70K – What’s Next For Crypto?
The next key resistance levels to watch are $0.1495 and $0.1625, with a longer-term target of $0.1787. These levels correspond to critical Fibonacci extension points, marking a potential 27% increase from current prices. Meanwhile, data from Coinglass indicates that derivative traders remain optimistic, with significant support levels established around $0.13-$0.1337.
With bullish sentiment dominating the Dogecoin market and whales accumulating the asset, many traders are gearing up for what could be an explosive rally. Whether or not DOGE will achieve the astronomical 5,200% upside remains to be seen, but the current technical indicators and market dynamics suggest that Dogecoin is far from done. As it stands at the precipice of potential price discovery, one thing is clear: the world will be watching closely.
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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