Dogecoin price could be gearing up for what looks like another notable rally after its recent performance since the beginning of January. Dogecoin, which spent the majority of the last two weeks of December down, has regained momentum this month and is now on the verge of surpassing the $0.40 mark Again.
According to crypto analyst Trader Tardigrade, Dogecoin is currently reflecting its movements during the last bull cycle. In particular, the price movements suggest that the meme coin could be gearing up for a significant rally to reach new all-time highs in the coming months.
DOGE plays a familiar price pattern
At the time of writing, Dogecoin is trading just below the $0.40 mark. This is an impressive recovery from its recent decline to $0.267 in mid-December. Interestingly, this drop saw the price of Dogecoin retrace around 45% after reaching a multi-year peak above $0.48 early December. This Dogecoin price spike is part of an impressive rally that has been taking place since October, with the meme coin surpassing several price resistance levels.
As Trader Tardigrade pointed out and as the chart below shows, the recent 45% correction suffered by Dogecoin is a clear replication of a similar scenario in 2021. At the time, Dogecoin was on an upward trajectory but encountered a temporary slowdown marked by a 45.86% retracement. Despite this brief correction, Dogecoin managed to regain its bullish momentum and continued an extraordinary rise that shattered its all-time high at the time. This bullish trajectory was so massive and ultimately resulted in Dogecoin breaking its previous all-time high and peaking at its current all-time high of $0.7316.
Is a Dogecoin price hike to $6 possible from here?
The similarities between the current price structure and the 2021 cycle suggest that Dogecoin could eventually experience another similar rally and break its previous high. If a similar rally were to take place, the projection, based on the 2021 rally, places Dogecoin at a price target of around $6 by mid-2025.
At the time of writing, Dogecoin is trading at $0.386, up approximately 22% over the past seven days. By the numbers, if Dogecoin hits the $6 price target, it would translate to an increase of approximately 1,450% from the current price level.
Several factors must align for Dogecoin to achieve such an ambitious goal. Among them, sustained buying pressure from individual and institutional investors, a increased whale activityprojected crypto-friendly policies of government and a renewed interest in coins on social networks.
Featured image created with Dall.E, chart from Tradingview.com