This historical trend sets Dogecoin’s path to $4
This historical trend sets Dogecoin’s path to $4 
Cryptocurrency Dec 29, 2024 Share
Dogecoin’s (DOGE) price action appears to be following a consistent historical pattern, suggesting a potential surge of about 1,150% if the formation plays out.
Specifically, Dogecoin has historically broken out of prolonged descending triangles, followed by explosive rallies. This pattern suggests the meme coin’s next target could be at least $4, according to cryptocurrency trading expert Ali Martinez, who shared the insights on December 28.
DOGE price analysis chart. Source: TradingView/Ali_charts
From 2014 to 2017, Dogecoin consolidated within a descending triangle for 165 weeks before a breakout drove it higher. A similar pattern occurred from 2017 to 2021, where a 154-week triangle concluded with another breakout, resulting in a rally of over 16,000%.
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Now, Dogecoin appears poised for its next major move. The current setup spans 183 weeks, with a descending triangle nearing completion. If this fractal repeats, Dogecoin could experience another meteoric rise, potentially reaching $4 at the minimum, with a high target of $23.
If DOGE reaches $23, it would likely achieve a market cap of over $3 trillion. While this valuation is ambitious if realized, Dogecoin would become the most valuable digital asset, provided other cryptocurrencies show minimal growth.
If this pattern holds in the short term, the immediate key target for DOGE is the $0.50 resistance level.
DOGE’s path to double-digit target
At the same time, another trading expert, Javon Marks, suggested in a December 28 X post that Dogecoin might be set to reach as high as $20 based on historical performance.
According to Marks, Dogecoin’s bull cycles have consistently become larger: the 2017 rally saw a 90-fold growth, while the 2021 phase saw returns of 306-fold. Therefore, if this momentum continues, DOGE could hit $20 in the current bull cycle.
DOGE price analysis chart. Source: TradingView
Despite the bullish technical outlook, Dogecoin is attempting to recover after a recent downturn, following the general trend in the cryptocurrency market.
While technical indicators point to a double-digit valuation, DOGE’s immediate target is to breach the $1 mark. This goal seemed plausible given the current rally, sparked by the post-election optimism following Donald Trump’s election and his close association with Dogecoin promoter and Tesla (NASDAQ: TSLA) CEO Elon Musk.
Achieving these levels would require Dogecoin to attract massive market interest, increased mainstream adoption, integration into payment systems, and greater utility beyond speculative trading.
DOGE price analysis
At press time, Dogecoin was trading at $0.3171, with daily losses of about 1.2%. On the weekly chart, DOGE has dropped 4.68%.
DOGE seven-day price chart. Source: Finbold
From the current valuation, Dogecoin appears to be positioned for potential long-term gains, supported by its technical setup. This is backed by the fact that DOGE is trading above the 50-day and 200-day simple moving averages (SMA), breaking the $0.50 resistance as a key target in the near term.
Featured image via Shutterstock
