The recent surge in Dogecoin (DOGE) has been attributed to Elon Musk’s influence and the increasing interest in meme coins. Traders are now speculating if DOGE can replicate its impressive rally in 2020-2021, when Musk’s support propelled its value to new heights. Analysts believe that there is potential for another significant increase, similar to the previous 16,000% surge.
Currently, Dogecoin is trading at $0.1471, with a 31.20% increase over the past week and a 2.78% rise in the last 24 hours.
Crypto analyst Trader Tardigrade has identified a potential bullish pattern on Dogecoin’s monthly chart. The Falling Wedge pattern, known for indicating a price breakout, suggests that the recent surge in price may continue. Tardigrade has labeled this development as the beginning of “DOGE season” and predicts further gains if the pattern holds.
Another analyst, Dima James Potts, has observed similarities between Dogecoin’s current price chart and its pattern during the 2021 breakout. Potts believes that Dogecoin could be on the brink of another parabolic rally. He notes that the coin has historically followed a consistent three-year cycle, with its price increasing by 1.5 times in 2016 and 2.5 times in 2020. If this pattern persists, Dogecoin could reach $0.31 by the end of 2024.
Potts also speculates that if the rally extends into 2025, Dogecoin could reach $10. However, this projection heavily relies on market conditions. Potts’ forecast is based on Dogecoin’s previous gains of 9,000% in 2017 and 18,000% in 2021.
The overall market sentiment for Dogecoin is becoming increasingly bullish. According to Coinglass, most investors are taking long positions, as indicated by Dogecoin’s long/short ratio of 1.02%.
Furthermore, data from IntoTheBlock shows a significant increase in large holder inflows, surging by 2,522.34% in the past week, from 42.71 million to 1.12 billion.
Another positive indicator for Dogecoin is its Open Interest, which has surged to $1.05 billion.
Additionally, Dogecoin’s Total Value Locked (TVL) has reached a three-month high of $4.82 million, suggesting increased participation in the Dogecoin ecosystem.
While the future remains uncertain, both technical analysis and market data indicate that Dogecoin may have further room for growth. Whether it can replicate its remarkable rally in 2021 is yet to be seen, but investors and analysts will be closely monitoring its progress in the coming months.