Bitcoin (BTC), the world's leading digital asset, reached a new record high of $106,620 on December 15. Bitcoin's recent rally has pushed the monthly increase to nearly 15% and the year-to-date surge to about 150%.
DOGE may benefit from Bitcoin's price surge.
As demonstrated in the past, Bitcoin's recent peak could lead to price increases in other assets. If this trend continues, Dogecoin (DOGE), the leading memecoin, could follow BTC's trajectory and reach new highs.
As of the time of writing this article, the price of DOGE is trading at $0.3993, up 2.19% in the last 24 hours and 5.5% in the last month. Despite daily and monthly increases, the memecoin has decreased by 8.16% over the past seven days.
Many believe that the weekly decline in DOGE's price is due to rising inflation in the U.S., causing panic among investors. These investors may have grown weary of investing in risky assets like Dogecoin.
In November, the cryptocurrency market experienced an extraordinary rally following Donald Trump's victory in the U.S. presidential election. However, the market has stagnated recently amid high expectations for the Federal Reserve's meeting. Market experts believe that DOGE and other assets could witness another rally if the Fed takes a dovish stance.
The market data tracking platform CoinCodex has predicted that the price of DOGE will consolidate over the next few months. This platform expects DOGE to trade at the current level until at least February 20, 2025. CoinCodex predicts that DOGE will gain traction by the end of February 2025 to reach $0.90 by March 15, 2025. Notably, a price increase to $0.90 from the current price would result in an approximate 125% increase.
However, Changelly has issued a bearish forecast for Dogecoin. This platform expects DOGE to hit a low of $0.351 by March 2025. Based on the current price, the target of $0.351 would translate into a decrease of about 13.33%.
Surge in Dogecoin Whale trading.
Meanwhile, large investors, often referred to as whales, continue to increase DOGE transactions.
According to CNF, recently, whales have purchased $160 million worth of DOGE, attracting attention and speculation within the cryptocurrency community. Such large transactions indicate that these whales are positioning themselves for potential price fluctuations, especially as the purchase coincides with a 6% decline for the week.
Onchain market analyst Ali Martinez has emphasized this whale activity as a positive momentum indicator for DOGE. The analyst predicts that DOGE could return to its all-time high of $0.7376, achieved in May 2021. Additionally, Martinez forecasts a bold long-term price target of $3 for Dogecoin.
Furthermore, cryptocurrency analyst Trader Tardigrade recently pointed out a bullish breakout from a symmetrical triangle pattern.
This technical formation, often associated with upward price trends, predicts that Dogecoin is about to have another rally. Tardigrade predicts a price target of $8 to $10 for DOGE, representing a significant increase for loyal holders.
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