Dogecoin (DOGE) works to recover from recent bearish trends, some market analysts believe the cryptocurrency may experience a significant price increase in the near future. According to trader Alan, Dogecoin’s next major rally could see the cryptocurrency surpass $1 and even reach as high as $4. While this may seem bold, the expert has provided some convincing reasons for why this surge could be possible.
In the last 24 hours, Dogecoin’s price has risen by 1.81%, trading at $0.3560. This represents an 11% drop from its higher levels earlier this week, signaling a period of consolidation and market uncertainty. Despite the modest uptick, many investors and traders are paying close attention to the cryptocurrency’s next movements, with hopes that a breakout rally could be coming soon.
In a recent post on social media platform X, trader Alan expressed optimism for Dogecoin holders, citing technical indicators and historical price movements. Alan explained that the cryptocurrency has followed a specific pattern of consolidation followed by significant breakouts, and this trend could see Dogecoin reaching new highs, potentially pushing the price to $4. Alan set this target based on the trend-based Fibonacci 1.618 Extension level, a common tool in technical analysis used to project price targets based on prior market movements.
Looking at Dogecoin’s past price movements, Alan noted that the coin has experienced consolidation phases followed by substantial breakouts. This trend began in mid-2023, when Dogecoin first surged past the $0.10 mark, a level it had struggled to break for several months. After this breakout, the coin briefly consolidated before resuming its rally in early 2024.
The price increase from $0.0578 in October 2023 to $0.2266 in March 2024 represented a 292% gain. Following this rally, Dogecoin entered another consolidation phase before experiencing a breakout in November 2024, reaching a price of $0.4850 by December. Alan believes Dogecoin could soon break above this resistance and approach the Fibonacci 1.618 level, aligning with the $4 target.
In addition to the Fibonacci projections, other technical indicators are also supporting the bullish outlook for Dogecoin. Market commentator Kamran Asghar pointed out that Dogecoin has formed a Bull Flag pattern on its 2-day chart. A Bull Flag is a continuation pattern that often signals an upward movement after a consolidation phase. According to Asghar, this pattern suggests that Dogecoin could experience significant upward price action, with a target price potentially exceeding $2.
A Bull Flag indicates that the market is preparing for a continuation of the prior uptrend, with a breakout likely to follow the consolidation phase. Asghar’s analysis suggests that if Dogecoin successfully breaks through resistance, it could continue to climb toward higher price levels, with some even predicting that the cryptocurrency could reach double-digit prices by the end of 2025.
While technical analysis is a key driver of Dogecoin’s potential growth, there are also fundamental factors that could help support a price increase. Recently, at least two asset managers in the cryptocurrency space have expressed their intentions to introduce a Dogecoin Exchange-Traded Fund (ETF). This could significantly raise institutional demand for Dogecoin, as ETFs offer a way for traditional investors to gain exposure to cryptocurrencies without directly holding them.
The introduction of a Dogecoin ETF could provide more liquidity and market stability, attracting a broader range of investors, including those who may have previously been hesitant to invest in cryptocurrencies. Some analysts believe this development could play a significant role in boosting Dogecoin’s price, with some even suggesting that it could reach $15.
While predicting that Dogecoin could hit $4 might seem ambitious, the cryptocurrency’s potential for significant growth is well-established. Dogecoin has already demonstrated its ability to increase in value, notably in 2021 and 2022 when it reached an all-time high of $0.7315 before facing a market correction. The Dogecoin community remains strong, and there is renewed interest in the cryptocurrency’s future prospects.
The growing interest from institutional investors in cryptocurrency, combined with Dogecoin’s increasing popularity, positions the coin for future growth. As the cryptocurrency market matures, Dogecoin could benefit from these trends, particularly as more institutional investors seek exposure to digital assets.
While Dogecoin’s price may currently be consolidating, technical indicators and historical patterns suggest the cryptocurrency is preparing for a significant price movement. With Fibonacci levels suggesting a potential $4 target and the Bull Flag pattern signaling an upward trend, Dogecoin’s next rally could be substantial.
Additionally, the development of a Dogecoin ETF and growing institutional interest could provide the support needed to push Dogecoin to higher price levels. Whether Dogecoin hits $4 or even $15 remains uncertain, but the coming months could be crucial for the cryptocurrency as it seeks to capitalize on these bullish indicators.
Dogecoin investors should stay alert as 2025 unfolds, as the cryptocurrency’s next move could be one to watch closely.
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