Dogecoin (DOGE), the original meme coin, has sparked renewed interest among crypto enthusiasts. Despite a 46% price correction, prominent analysts suggest that DOGE could follow historical patterns to achieve an astonishing rally, potentially reaching $18.
Drawing on price cycles from 2017 and 2021, analysts predict the meme coin may still have significant upside.
Here’s how Dogecoin’s trajectory could play out based on past trends and market conditions.
Historical Patterns Point to Parabolic Gains
Crypto analyst Ali Martinez recently highlighted similarities between Dogecoin’s current price action and its historic rallies. Both in 2017 and 2021, DOGE exhibited a three-stage pattern:
- Initial Rally: In 2017, DOGE surged by 212%, while in 2021, it rose by 476%.
- Correction Phase: Corrections of around 40-56% followed these rallies, allowing for consolidation.
- Explosive Surge: After these corrections, DOGE skyrocketed by 5,000% in 2017 and 12,000% in 2021.
Currently, Dogecoin has experienced a 46% correction after achieving over 400% year-to-date (YTD) gains. If the asset follows this historical pattern, a parabolic rally to $18 is within the realm of possibility.
Chart Analysis
The price chart for DOGE shows an ascending channel on the weekly timeframe. According to Martinez, this channel aligns with a target near $18, representing a 5,600% increase from the current price of $0.31355.
Example of Historical Movements
| Year | Initial Gain | Correction | Final Rally | Peak Price |
|---|---|---|---|---|
| 2017 | 212% | 40% | 5,000% | $0.01857 |
| 2021 | 476% | 56% | 12,000% | $0.74 |
| 2023 | 400% | 46% | Predicted: 5,600% | Predicted: $18 |
Potential Catalysts
Elon Musk and DOGE Advocacy
Elon Musk has long been a vocal supporter of Dogecoin, often influencing its price with tweets and public endorsements. His playful ties to the so-called Department of Government Efficiency (D.O.G.E.), coupled with his influence in tech and finance, could provide the momentum needed for a breakout rally.
Pro-Crypto Policies
With Donald Trump’s pro-crypto stance as U.S. President-elect, favorable regulations could drive investor confidence. Policies aimed at reducing barriers for crypto adoption might act as a tailwind for meme coins like DOGE.
Global Quantitative Easing
Economic uncertainty and continued quantitative easing worldwide may push more investors toward decentralized assets like Dogecoin.
Analyst Predictions
While Ali Martinez projects an ambitious $18 target, other analysts are also bullish:
- Dima James Potts: Predicts DOGE could reach $10 by 2025, citing the coin’s four-year cycle.
- Trader Tardigrade: Sets an even higher target of $30, assuming significant catalysts.
Risks and Considerations
Parabolic rallies of this magnitude often depend on external factors, such as major endorsements or favorable economic conditions. Without significant catalysts, DOGE could face resistance at key price levels.
Dogecoin’s potential rally to $18 may seem ambitious, but history and current market sentiment suggest it’s not impossible.
With strong backing from influential figures like Elon Musk and the possibility of supportive crypto regulations, DOGE remains a token to watch closely.
For investors, patience and risk management are essential, as meme coin volatility can be unpredictable.
