What price will Dogecoin reach in the next altseason?

Important facts:
  • According to analysts, Dogecoin appears set to extend its recent gains.

  • DOGE is up 85% from its all-time high price.

In the last bullish cycle, the price of the cryptocurrency Dogecoin (DOGE) increased by more than 35,000%, making it the main memecoin in the market due to great FOMO (fear of missing out). Later, its price dropped sharply and is now 80% below its historical maximum, which raises various doubts.

Where could the price of Dogecoin go in a possible alternative season in 2024 or 2025? Will it retest its all-time high of $0.75 (USD) during this period? Will it eventually be able to trade at $1 as its enthusiasts hope?

Bitcoin (BTC)’s recent rise to over US$64,000, which is 7% off its all-time high of US$69,000 achieved in the last bullish cycle, means that uncertainty about Dogecoin is currently on the table. Holds a big place.

Historically, as CryptoNoticias has reported, Bitcoin bull runs have sparked enthusiasm among investors about the general cryptocurrency market, creating more demand for these assets. As a result, this generates an altseason, a season in which BTC’s dominance falls and altcoins generate outperformance.

It should be noted that digital currencies are called altcoins without counting Bitcoin, the main currency in the market. With this in mind, the current behavior of BTC Previews a possible alternative season that could boost Dogecoin,

According to the trader who goes by the nickname SantinoCrypto, a trading season could begin in these weeks due to expectations of two events. One is the Bitcoin halving in April, an event that halved the currency’s issuance, fueling its growth. And second, there is the possible approval of an exchange-traded fund (ETF) of the main altcoin, Ether (ETH), in the United States between now and May.

“If history repeats itself, we could see DOGE enter a parabolic breakout around April,” Said Technical analyst Ali Martinez. For now, he notes that the price action appears to mirror the patterns he has seen in previous bull markets.

As shown in the chart, DOGE has seen a period of low volatility of 97 weeks over the past two cycles, before reaching a new all-time high. So after completing that time again, According to this analyst’s opinion – could face a rise that would take it above US$3.5,

DOGE price in previous cycles. Source: Ali Martinez.

However, it should be noted that DOGE’s rise to US$3.5 would mean it would reach a market capitalization of over US$500 billion, which is higher than ETH according to CoinMarketCap data. Therefore, it seems like a difficult prospect to realize at this time, despite the fact that the significant rise to new all-time highs in the last two bull cycles leads us to believe it could happen.

In fact, looking at how far it is currently from its all-time high price, while Bitcoin and other currencies are close to surpassing it, this shows a significant lack of demand. In what sense, It will be necessary for investors to flock to Memecoin to reclaim its all-time high of USD 0.75,

In a positive sign, DOGE appears to be mirroring the pattern of the previous cycle: “After breaking out of a descending triangle, it is now in a consolidation phase, potentially setting the stage for another major uptrend. Used to be,” has warned Ali.

This can be seen in the chart below, which further shows that DOGE has successfully tested the support at $0.05 on several occasions.

DOGE broke its decline of last year. Source: Ali Martinez.

The trader known as Crypto Tony think over The bearish breakout experienced by DOGE last year represents a “restock zone before the next big rally.”

In tune, the trader is popular by his pseudonym Crypto Rand sent That, after the breakout, “DOGE looks absolutely ready here” to accelerate the rise.

As seen below, DOGE is now trading at $0.14, a psychologically important area as it has served as support-resistance in the past. Investors return to the levels they previously focused on. Therefore, according to this analysis, Next market targets could be USD 0.20 and USD 0.35 before reaching all-time highs if demand continues to be driven by alternative climates.

The orange lines show price levels that act as strong support or resistance zones. Source: TradingView.

Elon Musk’s involvement seems important in the rise of DOGE

For crypto rand, “we just need that tweet from Elon” to send Dogecoin skyrocketing.

Dogecoin’s remarkable rise over the past altseason was largely driven by various tweets and initiatives Support of businessman Elon Musk, As one of the richest people in the world and the CEO of giant electric car company Tesla, space services provider SpaceX and social network X (X Twitter), his enthusiasm for Memecoin was significant in the market.

Musk has faced lawsuits for allegedly manipulating his markets. This might have been the reason why he stopped writing so many messages of encouragement. However, it has continued to support its use, such as allowing DOGE payments in its companies and temporarily changing the logo of its social network

even hopefully this year SpaceX launches a satellite on the Moon under the mission named “Doge-1” Funded in Memecoin. This event, as well as other Dogecoin-related actions that Musk may take, could prove to be a catalyst for the market.

Musk’s potential involvement in the market, among other reasons, gives some optimistic expectations that DOGE will reach the $1 price in the next altseason. One of them is an enthusiastic cryptocurrency trader known as hornhair,

«If you bought DOGE today and think you’re late, don’t worry. You got in before Bitcoin reached its new all-time high price. You came into this cycle before Elon made his first tweet about DOGE. You entered before the US elections, which caused a stir in the markets. “You entered before the rate cut by the Federal Reserve,” he commented, listing potential catalysts for the market.

Dogecoin is showing signs of improvement, although there are risks associated with it

According to analyst Mike Fay, there are several risks to consider when investing in Memecoin. For one thing, their starter base is quite centralized. 65% of DOGE is controlled by whales (Billionaires) and big investors,

DOGE investors according to the size of their stake. Source: Mike Fay.

“This centralization of circulation is one of the main reasons why I still don’t dare buy DOGE, as there is enough supply that any scammer could be induced to sell,” Fay said.

Added to this, Another risk is the lack of emissions limits, which is different from half of Bitcoin. There are 143.2 billion Dogecoins and their supply will continue to grow. Fay says there will be 172 billion people at the end of the decade.

The analyst comments, “If the joke is still funny by then, there will probably be new buyers who will take up that offer.” But at least he warned that he has no plans to be part of the lawsuit, as DOGE has emerged as a “joke” cryptocurrency. That is why it belongs to the so-called memecoins.

However, he warned that his opinion that “Dogecoin is a meme and nothing more” may not be correct. This is because “network usage seems to be improving, partly because Bitcoin is not an affordable medium of exchange for small transactions,” he says (although, in that statement, he omits the existence of the Lightning Network). Give).

It sheds light on Dogecoin is seeing a large increase in active users compared to other cryptocurrency networks, like Bitcoin. This can be seen in the following table, which shows the number of active users broken down by different ecosystems over the last three months.

The number of active users of different cryptocurrency networks in recent months. Source: Mike Fay.

Given this, Fay says that the price of DOGE “could rise further.” “We cannot rule out the possibility that buyers will flock to DOGE again sometime during 2024,” he said.

“I still don’t think it’s a great long-term investment, but I’m willing to move from selling to holding,” he said. He concluded by saying that swing trading, which involves trading according to short-term trends, “could bear some fruit as Bitcoin rapidly approaches a new all-time high.”

In this sense, different viewpoints coexist in the market on the development of the price of Dogecoin, although many agree that in the short or medium term it can be driven upwards.

the explanation: This article is written for informational purposes and does not constitute investment advice or a financial recommendation. Each investor is responsible for conducting his or her own research.

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