Dogecoin price may be preparing for another remarkable rally current performance since the beginning of January. Dogecoin, which was in decline for most of the last two weeks of December, has regained momentum this month and is on the rise is now close to breaking through the $0.40 mark again.
According to crypto analyst Trader Tardigrade, it is Dogecoin currently reflects his movements in the last bull cycle. In particular, the price movements suggest that the meme coin may be preparing for a significant rally to reach new all-time highs in the coming months.
DOGE is playing out a familiar price pattern
At the time of writing, Dogecoin is trading just below the $0.40 mark. This represents an impressive recovery after the recent decline to $0.267 in mid-December. Interestingly, this decline caused the Dogecoin price to decline by around 45% after reaching a Multi-year high above $0.48 Beginning of December. This Dogecoin price peak was the result of an impressive rally that had been underway since October and saw the meme coin break through several price resistance levels.
As Trader Tardigrade pointed out and as shown in the chart below, the recent 45% correction that Dogecoin underwent is a clear replica of a similar development in 2021. At the time, Dogecoin was on an uptrend but experienced a temporary slowdown that occurred marked a retracement of 45.86%. Despite this brief correction, Dogecoin managed to regain its bullish momentum and continued an extraordinary rise that broke its then all-time high. This uptrend was so massive and eventually ended with Dogecoin breaking its previous all-time high and reaching its current all-time high of $0.7316.
Is a rise in Dogecoin price to $6 possible from here?
The similarities between the current price structure and the 2021 cycle suggest that Dogecoin could experience another similar rally at some point and break its previous record. Should a similar rally occur, the forecast suggests Dogecoin will have a price target of around $6 by mid-2025, according to the 2021 Rally.
At the time of writing, Dogecoin is trading at $0.386, up about 22% over the last seven days. If Dogecoin crunches the numbers, this would represent an increase of around 1,450% from current price levels if it were to hit the $6 price target.
For Dogecoin to achieve such an ambitious goal, several factors must come together. This includes, above all, the ongoing buying pressure from private and institutional investors Increase in whale activityprojected crypto-friendly policies from the government and renewed interest in it Meme coins on social media.
Featured image created with Dall.E, chart from Tradingview.com