According to chart analysis, Dogecoin (DOGE) may rebound quickly and return to its highs at the end of 2024, and even the increase in 2025 is more worth looking forward to.
Last week, Dogecoin prices fell to a low of $0.26 but quickly rebounded to $0.33, forming a triangle pattern that could signal a breakout.
This means that over the next few days, the price of Dogecoin could recover and move closer to its recent high of $0.48.
However, the $0.37 to $0.38 range could act as a strong resistance level as it contains the 21-day and 50-day moving averages, which also coincide with some recent lows.
This positive atmosphere is likely to continue until the end of the year. Why?
First, despite the Fed's more hawkish than expected interest rate forecast, most cryptocurrencies are gradually recovering from the sell-off triggered by the Fed last week. Now, the prices of many major cryptocurrencies are still far below the levels before the Fed's hawkish meeting, which means that the market still has room to rebound.
There are many favorable factors supporting the development of the cryptocurrency market, especially as we are entering a "new golden age" for crypto markets in the United States and around the world.
The incoming Trump administration is likely to greatly promote the popularity of Bitcoin and other major cryptocurrencies, especially Trump's goal of establishing a strategic reserve of Bitcoin. In addition, Musk's "New Department of Government Efficiency" (DOGE) will be established under Trump's leadership, which will undoubtedly promote the future "meme coin" craze.
In addition, Dogecoin (DOGE) whales have started buying crazily again!
In the past three days, whales have bought 270 million Dogecoins, which indicates an increase in market activity and may mean that Dogecoin has a chance to rebound. The surge in these whale trading volumes and the large fluctuations in Dogecoin prices show that whales have a considerable influence on the market.
According to historical data, similar whale purchases usually occur before market rises, which also suggests that DOGE may usher in a wave of increases.
This suggests that large-scale purchases are driving the market in an upward direction. If this trend continues, prices are likely to continue to rise.
Whale-led market dynamics, especially in large-volume trades, could lead to greater buying pressure, prompting DOGE to rally in the broader market.
Triple Force Pattern in DOGE Price
Looking at the daily chart of Dogecoin, you can see that its key trading pattern fits the so-called Power of Three (PO3) strategy. In simple terms, this strategy consists of three phases: accumulation, manipulation, and distribution.
The accumulation phase began in early November, during which time prices were relatively stable with low volatility, meaning that investors were quietly buying DOGE but did not significantly drive prices up.
By mid-December, the market entered the manipulation phase, when prices fluctuated significantly, with the goal of artificially suppressing prices to shock some vulnerable investors and see if new entrants could withstand the pressure.
It is expected that Dogecoin will enter the final phase, the distribution phase. Historically, if this distribution phase is similar to the previous pattern, the price may continue to rise, even approaching or exceeding the previous high, and the speculative target may reach $1.
The recent activity of Dogecoin has sparked speculation in the market that it is about to enter a bullish trend. The hot discussions on social media and the promotion of market sentiment may further accelerate this trend.
How much can the price of Dogecoin rise in this cycle?
With Trump likely returning to the White House, the Dogecoin market is expected to rebound in early 2025, possibly returning to recent highs. Bulls hope to see prices break through the all-time high of $0.70 again, as they did in 2021, and possibly even hit $1 for the first time.
But will this be the end of Dogecoin? Analyzing Dogecoin’s past cycles shows that bulls should aim for bigger targets. This rally could exceed many people’s expectations.
Since 2014, Dogecoin has gone through three complete market cycles, which provides clues for our prediction of where it will be in 2025.
By drawing Fibonacci extensions between previous bear market lows and highs, we can see that each rally has surpassed the 4.236 Fibonacci level, with the 2021 rally breaching this level more than ten times.
According to the Fibonacci extension lines drawn from the 2022 bear market low to the 2021 high, Dogecoin should reach at least $3 per coin this time around to be in line with the expectations of the current cycle.
However, from historical experience, the price of Dogecoin often exceeds expectations and even exceeds the target of Fibonacci expansion. Therefore, it is not unrealistic to expect the price of Dogecoin to reach $1 in this round. Although this goal means a market value of trillions of dollars, it does seem a bit exaggerated.