Dogecoin has regained some of its value after experiencing a 14% decline over the past two weeks. Trading at $0.337 on Thursday, Dogecoin (DOGE) showed slight growth over the past 24 hours but remains down around 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 strong long-term growth potential.
Historical Price Patterns Fuel Optimism for Dogecoin
Crypto analyst Tardigrade highlighted Dogecoin’s consistent pattern of price cycles, which have historically followed an ascending channel. The analyst referenced the cryptocurrency’s price rise from $0.00015 to $0.038 in 2017, noting that current market conditions reflect this previous trend. Tardigrade believes that this historic trend could pave the way for significant price growth, suggesting that Dogecoin is likely to see notable gains over the next few years.
The analyst 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 d ‘by 2028. These updated price targets are based on a more reasonable outlook, with Tardigrade pointing out that previous predictions of Dogecoin hitting $30 were too ambitious given current conditions of the market.
Retracements do not indicate a bear market
Despite the 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 top, suggesting that the recent pullback is part of a healthy consolidation phase rather than the sign of an imminent collapse in prices.
Tardigrade predicts that this consolidation will allow Dogecoin to gain momentum for further price increases. With the current technical setup, the analyst believes that Dogecoin could eventually surpass its all-time high of $0.7488 and potentially target levels as high as $0.95 in the coming months. Although retracements can often signal weakening momentum, Tardigrade says the trend seen in Dogecoin is consistent with the uptrend continuing.
Whale activity further supports bullish sentiment
Data from IntoTheBlock provides further evidence of Dogecoin’s bullish outlook. The platform reports that large holders have increased their entries 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 reduced market supply.
In fact, this accumulation trend is also visible in the most recent 30-day period, where inflows from large holders increased by 323%. This continued accumulation by major players suggests that Dogecoin’s long-term prospects remain strong as fewer tokens are available on the open market.
Conclusion
As Dogecoin recovers from its recent declines, analysts like Tardigrade are growing more optimistic about its long-term potential. Building on historical price trends, bullish technical indicators, and whale accumulation, there is growing confidence that Dogecoin could make significant gains in the years to come. With price targets of $2 by 2025 and potentially as much as $8 by 2028, investors may have reason to be optimistic about Dogecoin’s future, despite short-term market volatility .
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