Analyzing Previous Trends And Why A 1,500% Rally Is Possible
The cryptocurrency market has experienced a period of consolidation over the past seven days. There are significant corrections Observed in both Bitcoin and Dogecoin. After hitting an all-time high of $108,135 on December 17, Bitcoin has retreated to $93,000. Likewise, Dogecoin has also come under pressure, falling from recent highs near $0.48 Settled just above $0.30 At the time of writing this article.
According to technical analysis of both cryptocurrencies, an interesting correlation has emerged that suggests Dogecoin will surge to $5 in the coming months.
800-Day Trend: The Case for Dogecoin’s Correlation with Bitcoin
Bitcoin and Dogecoin have one of these The biggest correlation between cryptocurrenciesespecially during market cycle transitions. Bitcoin has always led the crypto market’s inflows and outflows, and Dogecoin has historically mirrored its price trends very closely.
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As one cryptocurrency analyst noted on social media platformthese patterns often extend beyond immediate price movements. For example, the number of days between Bitcoin’s cyclical bottoms and Dogecoin’s subsequent peaks exhibit a consistent rhythm.
In particular, technical analysis suggests that there is a roughly 800-day consistent pattern between Bitcoin’s bottom and Dogecoin’s next major peak. The historical data supporting this theory is compelling. This pattern first emerged in 2017, when Dogecoin prices peaked 868 days after Bitcoin’s 2015 bottom. The 2021 bull rally has shown the same phenomenon again, with Dogecoin price reaching its current all-time high at $0.7316, 875 days after Bitcoin bottomed in 2019.
What’s the outlook for Dogecoin price?
The ongoing market cycle appears to be following a similar trajectory. After enduring a prolonged bear market that saw significant declines across the cryptocurrency industry in 2022 and early 2023, Bitcoin hit its most recent bottom at $15,422 in the first half of 2023. Thereafter, Bitcoin entered a new bullish phase and gained momentum in the second phase. The second half of 2023 and the full year of 2024.
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Considering the 800-day trend, Dogecoin’s next major peak could coincide with a timeline of approximately 800 days after Bitcoin’s 2023 bottom. The prediction places Dogecoin’s potential peak around March or April 2024. In terms of price targets, the analysis provides a bullish outlook for Dogecoin. Based on historical price performance and size of previous ralliesa price of $5 has been identified as a realistic target for Dogecoin within the projected timeframe.
At the time of writing, Dogecoin is trading at $0.32, down 1.8% in the past 24 hours. If this trend repeats, the price of Dogecoin could surge 1,460% from current levels to reach a new all-time high. While this seems very optimistic, it is dwarfed by the reality Compared to other forecasts Dogecoin price reaches peak. Some analysts speculate that Dogecoin May reach $20 by 2025.
Featured image created using Dall.E, chart from Tradingview.com
