The price of Dogecoin (DOGE) has rebounded to $0.33 after falling to a low of $0.26 last week, forming a triangular pattern that could soon become a catalyst for a bullish breakout.
This means that in the coming days, the price of Dogecoin may temporarily rebound to a recent high of $0.48.
Of course, the 21 and 50 DMA in the $0.37-38 region may provide strong resistance, as they also coincide with some recent lows.
But this positive atmosphere is likely to last until the end of the year. Why?
Well, major cryptocurrencies are temporarily recovering from the sell-off triggered by the Fed last week, as the Fed's interest rate forecast is more hawkish than expected.
However, most major cryptocurrencies are still far below the levels before the Fed's hawkish meeting, indicating there is still room for further recovery.
Currently, many favorable factors support the cryptocurrency market. This is because we are about to enter a new golden age for the cryptocurrency market in the United States and globally.
The incoming Trump administration and Congress may significantly accelerate the adoption of Bitcoin and other major cryptocurrencies, especially as the government aims to establish a strategic Bitcoin reserve for the US.
Thus, the emergence of a new meme coin/alternative coin season has fertile ground; since Trump achieved an overwhelming victory in the elections, we have seen flashes of such coins.
Dogecoin is the oldest and currently the largest meme coin, which is sure to lead the future meme season.
Musk's new department aims to reduce government fraud and waste, which will generate significant controversy and will almost continuously be in the news spotlight.
This almost guarantees that Dogecoin will maintain its leading position in the meme coin market 'mind share', ensuring continued market leadership.
How much will Dogecoin (DOGE) price rise in this cycle?
Therefore, with Trump's return to the White House, the Dogecoin market is very likely to rise to recent highs in early 2025.
Bulls hope to eventually rebound above the historical high of $0.70 from 2021, with the possibility of soaring to $1.00 for the first time.
However, could this be the end of Dogecoin? An analysis of Dogecoin's past cycles suggests that bulls need to aim for bigger and higher targets, and this rebound could far exceed many people's expectations.
Since its establishment in 2014, Dogecoin has gone through three market cycles, which can provide clues for Dogecoin's development in 2025.
When drawing Fibonacci extensions upwards from the previous bear market low to the prior bear market high, it can be seen that Dogecoin's rebound has consistently far exceeded the 4.236 Fibonacci level, surpassing this Fibonacci extension by more than ten times during its rebound in 2021.
Falling back from the 2022 bear market low to the 2021 high of 4.236 Fibonacci extension levels indicates that Dogecoin should reach at least $3 per token in this cycle.
But historical experience shows that Dogecoin's price often exceeds this level. Considering this, it is not unreasonable to expect Dogecoin's price to reach $10 in this round.
Of course, this means trillions of dollars in market cap; this demand might be a bit excessive.
But Dogecoin can definitely rise tenfold from current levels, reaching a market cap of $100 billion, making it a strong candidate for the best meme coin to buy right now.
