As Dogecoin (DOGE) battles short-term bearish sentiment, historical price movements and technical indicators suggest the top meme coin could be poised for another parabolic rally.
This forecast comes from renowned cryptocurrency trading expert Ali Martinez, who drew parallels between Dogecoin’s movements in 2017 and 2021, hinting at explosive growth after significant corrections, as published in X’s December 23 post.
Back in 2017, Dogecoin rose 212%, followed by a 40% pullback, and then began a 5,000% rally. Similarly, in 2021, DOGE has rallied 476%, retreated 56%, and soared 12,000% to its all-time high.
The same pattern appears to be repeating itself in 2024, with the meme coin rising 440% before undergoing a 46% correction, closely mirroring its previous cycles.
According to Martinez’s analysis, this situation could signal the start of another parabolic move for Dogecoin.
“Now in 2024, DOGE is up 440% and down 46%. If history repeats itself, we will be in for another parabolic rally,” Martinez said.
Indeed, the Dogecoin price is within an ascending channel, and this pattern often precedes major rallies. A break above the channel could signal a bullish reversal and trigger a parabolic rally.
DOGE target price of $0.70
In another X post on December 21, cryptocurrency trading analyst Javon Marks also highlighted that historical patterns could be hinting at a new DOGE rally.
The analyst noted that the recent pullback reflects the price movement since 2020, when DOGE broke through a descending resistance pattern, briefly consolidated and rose more than 122%, achieving more than doubling.
The expected target for this rally is $0.73905, suggesting that Dogecoin could come back and surpass its all-time high.
Beyond its technical structure, Dogecoin’s growth potential is also driven by fundamentals, with the influence of Tesla (NASDAQ: TSLA) CEO Elon Musk remaining a key element. Musk’s comments about Dogecoin have had a major impact, and the possibility of a rally could coincide with his official appointment as head of the Department of Government Effectiveness (DOGE) in January 2025.
In addition, DOGE has recently noticed an increase in whale aggregation, which strengthens confidence in the asset. Historically, such deals have preceded large price increases.
DOGE Price Analysis
At the time of publication, DOGE was valued at $0.31, showing weakness on the daily and weekly timeframes, falling 0.40% and 21%, respectively.
Against the backdrop of the current correction, Dogecoin’s technical situation suggests a possible decline in the short term. The coin is trading below its 50-day simple moving average (SMA) of $0.360157, adding to bearish momentum.
DOGE remains above the 200-day SMA, which is located at $0.178915, indicating that the long-term trend may still maintain a bullish tone.
Interestingly, the Fear and Greed Index reads 73, firmly in the “greed” zone, hinting at strong market interest despite the prevailing negative sentiment.
Thus, as DOGE faces short-term weakness, historical patterns suggest that Dogecoin could be on the verge of another explosive rally, awaiting a breakout towards the $1 mark.
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