An analysis of Dogecoin’s (DOGE) price history indicates the possibility of a rally to $18, despite a recent 46% correction. Historical patterns from previous market cycles in 2017 and 2021 have been highlighted to support this claim.
DOGE’s Resilience Amid Market Volatility
Dogecoin has experienced significant gains in 2024, buoyed by favorable market sentiment. Despite broader market volatility triggered by comments from Federal Reserve Chair Jerome Powell, DOGE has maintained an upward trajectory. Although the recent rally has slowed, historical trends suggest the potential for another parabolic run.
The Roadmap to $18: A Historical Perspective
Prominent crypto analyst Ali Martinez has emphasized the possibility of a DOGE rally based on past market behaviors. In a recent analysis shared on December 23, Martinez pointed out that Dogecoin has historically posted massive gains after initial rallies followed by corrections of approximately 50%.
In 2017, a 212% gain was followed by a 40% correction, leading to a 5,000% rally that peaked at $0.01857. Similarly, in 2021, a 476% gain was succeeded by a 56% correction and an astounding 12,000% surge to DOGE’s all-time high of $0.74.
Martinez noted that DOGE’s recent correction from $0.48434 to $0.26216, representing a 46% decline, aligns with this pattern. With over 400% year-to-date (YTD) gains in 2024, the analyst suggested that another parabolic rally could follow, targeting $18. This price point reflects a 5,600% increase from DOGE’s current price of $0.31355.
Key Catalysts for a DOGE Rally
Historical rallies for DOGE have often been driven by significant market catalysts. For this rally, potential factors could include support from long-time
DOGE advocate Elon Musk and his involvement in the Donald Trump-established Department of Government Efficiency (playfully referred to as D.O.G.E by Musk).
Related Article: Dogecoin Faces Resistance Amid Consolidation, Showing Minor 1.06% Decrease: 24-Hour Price Analysis
Additionally, the pro-crypto stance of the Trump administration and the ongoing global trend of quantitative easing are anticipated to create favorable conditions for DOGE’s price growth.
