As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market cycles and trends. While it’s always important to approach any investment advice with caution, I must admit that the performance of Dogecoin (DOGE) during its previous bull runs has caught my attention.

TL:DR;

  • Dogecoin was once the top-performing cryptocurrency after Donald Trump’s victory, going from under $0.15 to almost $0.5.
  • Although it has lost its momentum, especially in the past week or so, history shows that its most spectacular price surge during this cycle could still be around the corner.

Can DOGE Pull a 2021-Like Rally?

As a researcher, I’ve observed an intriguing surge in Dogecoin’s value following the U.S. presidential elections. This dramatic rise could potentially be linked to Elon Musk’s association and his anticipated role within Donald Trump’s administration. By December 8th, the coin’s price had skyrocketed more than 200% from its previous low, reaching a peak of $0.485.

Following some substantial advancements, Dogecoin (DOGE) initially held its ground around the $0.4 mark, but then began to reverse course. However, last week’s market-wide plunge caused it to sharply decline. Over a short period, DOGE’s value dropped by almost 40%, landing at approximately $0.26.

Even though a significant adjustment like this might seem challenging, it’s not unprecedented in the cryptocurrency market, particularly within the unpredictable meme coin segment. Previous instances of heightened volatility have occurred, and they could potentially hint at a more promising future for DOGE.

crypto analyst Ali Martinez drew a parallel between the recent market dip and similar events during the bullish periods in 2017 and 2021. In both cases, the most popular meme coin saw a triple-digit increase, followed by a decrease of around 40% to 60%, only to then skyrocket by four or even five times the initial value at the conclusion of each surge.

2017 saw Dogecoin start an impressive surge, rising by a massive 212% before experiencing a 40% dip. However, the cryptocurrency soon bounced back with an additional 5,000% increase. In 2021, the coin again experienced significant growth, reaching a 476% rise, followed by a 56% decrease. But it didn’t stop there – it went on to soar another astounding 12,000%.

Currently, as we approach 2024, the value of DOGE has risen significantly by 440%, but it has subsequently dropped by 46%. Should past trends hold true, we might be in store for another dramatic surge!

— Ali (@ali_charts) December 23, 2024

Can DOGE Soar Above $10?

Such astronomical increases, like 5,000% or 12,000%, might appear quite optimistic, but let’s examine these forecasts with a more practical perspective. In 2017 and 2021, Dogecoin’s price was relatively tame compared to the massive gains suggested, and achieving such extraordinary growth seemed simpler, theoretically speaking.

Should the original meme coin continue growing by comparable percentages from this point, its value and market capitalization would soar to immense heights. To illustrate, if it experiences a 5000% increase, its price could exceed $13, while its market cap would surpass $1.9 trillion – a figure larger than bitcoin‘s current market cap.

If Dogecoin mirrors its 2021 growth, it could potentially reach a price between $31 and $32, surpassing even Apple’s current market cap of approximately $2.3 trillion, placing its own market capitalization at over $4.5 trillion.

While these figures may seem unlikely and history isn’t always predictive of future price movements, it doesn’t automatically imply that Dogecoin has reached its maximum potential in this cycle. It’s important to note that Dogecoin is yet to reach its record high from 2021, and there are numerous other assets that have surpassed their previous peak values. As such, Dogecoin may still hold significant growth potential.

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2024-12-23 14:10