Dogecoin has regained some of its value after experiencing a 14% dip over the last two weeks. Trading at $0.337 as of Thursday, Dogecoin (DOGE) has shown slight growth in the past 24 hours but remains down by about 0.65% over the past week. Despite these fluctuations, market analysts are taking a more optimistic view, citing historical trends and key technical indicators that suggest the potential for strong long-term growth.

Historic Price Patterns Fuel Optimism for Dogecoin

Crypto analyst Tardigrade has highlighted Dogecoin’s consistent pattern of price cycles, which have historically followed an upward channel. The analyst referenced the cryptocurrency’s price surge from $0.00015 to $0.038 in 2017, noting that the current market conditions mirror this previous pattern. Tardigrade believes that this historical trend could pave the way for significant price growth, suggesting that Dogecoin is set to see notable gains over the next few years.

The analyst has adjusted his previous expectations for Dogecoin’s future value, forecasting that the price could reach as high as $2 by 2025. However, he believes that continued growth could propel the cryptocurrency to $8 by 2028. These updated price targets are grounded in a more reasonable outlook, with Tardigrade emphasizing that previous forecasts of Dogecoin reaching $30 were overly ambitious given the current market conditions.

Retracements Do Not Indicate a Bearish Market

Despite recent retracements, Tardigrade maintains that Dogecoin’s price action remains in a bullish phase. The cryptocurrency recently broke out of an ascending triangle pattern on January 3, surpassing a critical resistance level of $0.3435. Following this breakout, Dogecoin reached a yearly high of $0.3989 before retracing to retest the triangle’s apex, which suggests that the recent pullback is part of a healthy consolidation phase rather than a sign of an impending price collapse.

Tardigrade predicts that this consolidation will allow Dogecoin to gather momentum for further price increases. With the current technical setup, the analyst believes Dogecoin could eventually surpass its all-time high of $0.7488, and potentially target levels as high as $0.95 in the coming months. While retracements can often signal weakening momentum, Tardigrade asserts that the pattern seen in Dogecoin is consistent with a continuation of the upward trend.

Whale Activity Further Supports Bullish Sentiment

Data from IntoTheBlock provides additional evidence of Dogecoin’s bullish outlook. The platform reports that large holders have increased their inflows into Dogecoin by over 3,700% over the past three months. This suggests that institutional investors and whales are accumulating DOGE, which often precedes price surges due to the reduction in market supply.

In fact, this accumulation trend is also visible in the most recent 30-day period, where large holder inflows rose by 323%. This ongoing accumulation by major players suggests that the long-term outlook for Dogecoin remains strong, as fewer tokens are available in the open market.

Conclusion

As Dogecoin recovers from its recent declines, analysts like Tardigrade are becoming increasingly bullish on its long-term potential. Drawing from historical price patterns, bullish technical indicators, and whale accumulation, there is growing confidence that Dogecoin could see significant gains in the coming years. With price targets of $2 by 2025 and potentially as high as $8 by 2028, investors may have reason to be optimistic about Dogecoin’s future, despite the short-term volatility in the market.