Dogecoin (DOGE) is seeing short-term weakness in line with the broader market trend, but one analyst is predicting a 3,000% rise in the asset’s price.
Based on historical price movements over past bull cycles, the analysis suggests that DOGE could target a lower valuation of around $8, according to a pseudonymous analyst. Slow growing trader In X mail On January 24th.
Specifically, in previous bull cycles during 2017 and 2021, Dogecoin posted gains of over 3,000% and 8,000%, respectively, after breaking out of the previous candle’s body highs.
For example, after breaking major resistance, Dogecoin price rose by 3,284%, rising from $0.00001838 to $0.01838 in a matter of months. History repeated itself when Dogecoin rose 8,025% to $0.72995 in 2021, buoyed by retail interest and celebrity support.
Right now, the formation of Dogecoin indicates the possibility of another big rally. If DOGE reverses its previous performance, the expert suggested that it could rise to $8.32 and $20.68 in the next session.
A break above critical resistance, near $0.41, could trigger a parabolic rally, reversing the previous uptrend.
Looking at the near-term target, senior trading analyst Ali Martinez expects Dogecoin to soon target $0.39 and possibly $15, given its multi-year upward channel.
However, breaking the $1 resistance level remains crucial for any possibility of Dogecoin registering a sustained rally. However, if DOGE reaches $8, its market capitalization will rise to about $1.18 trillion, ranking second only to Bitcoin (BTC).
What’s next for Dogecoin?
In the same context, an analysis conducted by a prominent expert in online trading Trading shot Highlight the importance of Dogecoin breaking the $0.40 resistance. In a TradingView post On January 25, the expert noted that Dogecoin has been trading within a consistent ascending channel pattern since it bottomed on December 20, 2024.
A reliable buy signal appeared every time the price formed a double bottom near the pattern’s upper and lower trend lines, accompanied by two consecutive bullish crossovers on the four-hour Moving Average Convergence Convergence (MACD) indicator.
This signal has occurred twice previously, causing prices to reach the 2.618 Fibonacci extension level, triggering a higher rally within the channel. Now the same pattern is being repeated for the third time.
Given this technical setup, the expert turned bullish on Dogecoin’s short-term potential, setting a target at $0.43250, in line with the 2.618 Fibonacci extension.
For DOGE to start a parabolic rise, the cryptocurrency needs significant buying momentum – an aspect that seems reasonable given the ongoing developments around the coin.
For example, a cryptocurrency that ranks eighth in terms of market cap could attract more institutional capital if a related exchange-traded fund (ETF) is launched. In this case, cryptocurrency investment firm Bitwise has reportedly applied to set up a legal trust in Delaware for the Dogecoin exchange-traded fund.
The rollout is part of broader market optimism for diversified cryptocurrency ETFs following the election of President Donald Trump, who nominated crypto-friendly Paul Atkins as chairman of the Securities and Exchange Commission (SEC).
Meanwhile, Rex Shares and its subsidiary Osprey Funds have applied for seven cryptocurrency ETFs, including those linked to Dogecoin, Bonk (BONK) and Trump’s official coin (TRUMP).
DOGE price analysis chart
By press time, DOGE was trading at $0.35, down more than 3% in the past 24 hours. On the weekly chart, the meme coin fell by 11%.
At the current price, Dogecoin is just below the 50-day simple moving average (SMA) of $0.366687, indicating short-term bearish momentum. However, it remains above the 200-day simple moving average at $0.213973, indicating a long-term uptrend.
The Relative Strength Index (RSI) is neutral at 49.94, reflecting consolidation, while the Fear and Greed Index at 75 indicates market greed. This indicates potential hyperactivity, highlighting the need for investors to be cautious.
Featured image via Shutterstock
