Cryptocurrencies stabilized a bit on Wednesday after falling for the last two consecutive days. Dogecoin price rose slightly as traders anticipated Elon Musk’s DOGE success. One analyst predicted that the dog-themed coin would rise to $4.20 during the ongoing cryptocurrency bull run.
Analyst Predicts Dogecoin Price Could Reach $4.20
The price of Dogecoin has seen a strong upward trend over the past few weeks, as it surged almost 500% between August 5 and November 23. This rally coincided with the crypto industry’s broader uptrend after Donald Trump won the election and nominated Elon Musk will lead the Department of Government Efficiency (DOGE).
In a post CEOa popular crypto investor with over 511,000 followers, predicted that the price of DOGE will rise to $4.20 during the current cycle. If this were to happen, it would mean that the coin would rise by 976% from the current level. Such a development is possible in the crypto industry since DOGE has already increased by 160% in recent days. If this happens, DOGE’s market capitalization would increase from the current $57 billion to over $613 billion.
For this to happen, cryptocurrencies need to experience a strong uptrend, which would attract a sense of greed into the market. Additionally, Bitcoin, the largest cryptocurrency in the market, is expected to continue its upward trend. In most periods, altcoins like Dogecoin thrive when Bitcoin sees a strong rally.
Other cryptocurrencies are very bullish on the price of Dogecoin. In an article, The Cryptomist noted that the coin formed a falling wedge pattern. This pattern forms when an asset forms two descending and converging trend lines. This usually leads to a strong breakout when the wedge is about to converge.
DOGE Price Chart Indicates Possible Breakout
While talking about DOGE price rising to $4.2 is a good thing, the more realistic situation is to target the psychological point at $1 first.
The weekly chart shows that the value of DOGE is in a long uptrend as it has surged for six consecutive weeks. In most cases, assets tend to take a breather after such a long bull run.
It remains above the important resistance level at $0.2278, its highest point in March this year. Going beyond this point invalidated a double top pattern whose neckline was at $0.0836. The coin remains significantly above the 50- and 200-week moving averages.
Further upside in Dogecoin price will be confirmed if it rises above this month’s high at $0.4790. Such a move would increase the chances of it reaching its all-time high of $0.7393, approximately 87% above the current level.
This Dogecoon Price Prediction will become invalid if it falls below the key support at $0.2833, the 61.8% Fibonacci retracement point. Such a move would increase the possibility of it falling to $0.20.
Frequently Asked Questions (FAQ)
Yes, the coin can rise up to $4.2 since everything in the crypto industry is possible. For example, Bitcoin went from less than $1 in 2016 to almost $100,000 today. DOGE needs to jump less than 1,000% to reach $4.2.
For Dogecoin to reach $1, it must first surpass this month’s high of $0.4790. A move above this level will increase the possibility of it retesting its all-time high of $0.7393.
Dogecoin has a market capitalization of over $57 billion. A move to $1 would push its valuation to more than $147 billion.
crisp
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
✓ Share: