Nairobi (CoinChapter.com) – Dogecoin (DOGE) experienced a notable surge last week, driven by the influence of Elon Musk and the growing interest in meme coins. This rise has prompted traders to question whether DOGE can replicate its impressive rally from 2020 to 2021, when Musk’s support propelled it to new heights. Analysts now believe that there is potential for another sharp rise, similar to the coin’s previous increase of 16,000%.
At the time of writing, Dogecoin is trading at $0.1471, reflecting a 31.20% increase over the past seven days and a 2.78% rise in the last 24 hours.
Crypto analyst Trader Tardigrade recently identified a potential bullish pattern on Dogecoin’s monthly chart. The Falling Wedge pattern, which typically indicates an upcoming price breakout, may explain the recent surge in price. Tardigrade has labeled this pattern as the beginning of “DOGE season” and predicts further gains if the pattern continues to hold.
Another crypto analyst, Dima James Potts, has pointed out that Dogecoin’s price chart resembles its pattern during the breakout in 2021. Potts suggests that Dogecoin may be on the verge of another parabolic rally. He notes that the coin has followed a consistent three-year cycle, with its price increasing by 1.5 times in 2016 and 2.5 times in 2020. If this pattern persists, Dogecoin could potentially reach $0.31 by the end of 2024.
Potts goes on to speculate that if the rally continues into 2025, DOGE could even reach $10. However, this projection is highly dependent on market conditions. Potts’ forecast is based on Dogecoin’s history, where it experienced gains of 9,000% in 2017 and 18,000% in 2021.
In addition to technical analysis, the overall market sentiment for Dogecoin is becoming increasingly bullish. Coinglass reports that Dogecoin’s long/short ratio currently stands at 1.02%, indicating that most investors are taking long positions.
Furthermore, data from IntoTheBlock reveals a significant increase in large holder inflows for Dogecoin, rising by 2,522.34% in the past week from 42.71 million to 1.12 billion.
Another important indicator supporting Dogecoin’s positive outlook is its Open Interest, which has surged to $1.05 billion.
Additionally, Dogecoin’s Total Value Locked (TVL) has reached a three-month high of $4.82 million, suggesting that more participants are engaging with the Dogecoin ecosystem.
While the future remains uncertain, both technical and market data suggest that Dogecoin may have further room for growth. Whether it can match its remarkable rally from 2021 remains to be seen, but investors and analysts will be closely monitoring its progress in the coming months.