As the price of Dogecoin (DOGE) stabilizes around $0.40, the bullish catalysts for the world's largest meme coin are accumulating in the background, suggesting that a new round of increases may be imminent.
Since breaking below the short-term uptrend and continuing to struggle against resistance in the form of 21DMA, DOGE still faces the risk of further pullbacks in the short term.
It may retest its 50DMA around $0.33, which also coincides with the key support area of 2021.
Nevertheless, the DOGE futures funding rate is currently at a relatively low level, indicating that any speculative excess accumulated in recent weeks has largely dissipated, thereby reducing the risk of recent sell-offs.
According to data from coinglass.com, the funding rate for leveraged futures positions has remained around 0.01%, consistent with levels from September to October, and has significantly decreased from the above 0.09% high reached earlier this month.
Dogecoin price – Is a new upward space coming soon?
Even if the price of Dogecoin does experience a short-term drop, it is expected to be quickly consumed by bulls—headline news related to Elon Musk/Vivek Ramaswamy's forthcoming efficiency department (DOGE) continues to emerge intensively.
And when the Trump administration takes office in the White House next January, this momentum may further intensify.
It is almost certain that Dogecoin will dominate the 'mind share' of the meme coin market. Therefore, the price risk for Dogecoin still strongly leans upwards.
According to TradingView data, retesting the historical high of 2021 ($0.73905) is the first major resistance level that bulls are targeting.
But the price of Dogecoin is expected to rise significantly. With the new pro-cryptocurrency government and Congress in the United States about to take office, a new golden age for cryptocurrency is on the horizon.
Discussions about potentially establishing strategic Bitcoin reserves are increasing around the world.
With the acceleration of cryptocurrency adoption and the industry's prosperity in the coming years, Dogecoin will continue to be a leading meme coin.
How high can Dogecoin go?
So the question arises, by how much will Dogecoin's price increase compared to the 2021 high?
$1? Very likely. DOGE investors may need to start considering bigger questions.
Looking back at Dogecoin's performance in past cycles may be helpful.
Since its establishment in 2014, Dogecoin has gone through three market cycles, which can provide clues.
When the Fibonacci extension is drawn from the previous bear market low upwards to the previous bear market high, it can be seen that Dogecoin's rebound consistently far exceeds the 4.236 Fibonacci level, exceeding this Fibonacci extension by more than 10 times during its rebound in 2021.
The Fibonacci extension level of 4.236 from the low point of the 2022 bear market to the high point of 2021 suggests that Dogecoin should reach at least $3 per token in this cycle.
However, historical experience indicates that the price of Dogecoin often exceeds this level. Considering this, it is not unreasonable to expect Dogecoin's price to reach $10 this time.
Of course, this implies a market cap of trillions of dollars, which may be a bit excessive.
But Dogecoin can definitely rise 10 times from the current level, reaching a market cap of hundreds of billions of dollars.
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