Dogecoin (DOGE) surged last week, fueled by Elon Musk's influence and growing interest in meme coins. The surge has traders wondering whether DOGE can match its 2020-2021 rally, as Musk's support sent it soaring. Analysts now see the potential for another massive rally, similar to the previous 16,000% gain.
At press time, Dogecoin was trading at $0.1471, up 31.20% over the past seven days and up 2.78% over the past 24 hours.
“DOGE Season” Coming? Falling Wedge Signals Breakout
Cryptocurrency analyst Trader Tardigrade recently pointed out a potentially bullish pattern forming on Dogecoin's monthly chart. The Falling Wedge pattern, which typically indicates a price breakout, could explain the recent price surge. Tardigrade labeled this development as the start of "DOGE season" and predicted further gains if the pattern continues to hold.
Meanwhile, cryptocurrency analyst Dima James Potts noted that Dogecoin's price chart resembles its pattern during its 2021 breakout. According to Potts, Dogecoin could be on the verge of another parabolic rally. He pointed out that the coin has followed a consistent three-year cycle, with the price increasing 1.5x in 2016 and 2.5x in 2020. If this pattern holds, Dogecoin could reach $0.31 by the end of 2024.
Potts further speculates that if the bull run continues into 2025, DOGE could reach $10, although this prediction is highly dependent on market conditions. Potts’ prediction is based on Dogecoin’s history, where it saw a 9,000% increase in 2017 and an 18,000% increase in 2021.
Bullish sentiment grows as large holders jump in
Aside from technical analysis, the overall market sentiment towards Dogecoin is growing. According to Coinglass, the long/short ratio of Dogecoin is currently at 1.02%, meaning that most investors are holding long positions.
Furthermore, data from IntoTheBlock shows that inflows from large holders surged 2,522.34% over the past week, from 42.71 million to 1.12 billion.
Open Interest Soars to $1.05B, TVL Hits Three-Month High
Another important metric supporting Dogecoin's bullish outlook is Open Interest, which has skyrocketed to $1.05 billion.
Additionally, Dogecoin's Total Value Locked (TVL) hit a three-month high of $4.82 million, a sign that more and more people are joining the Dogecoin ecosystem.
While the future remains uncertain, technical and market data suggest that Dogecoin may have more room to grow. Whether it can achieve its phenomenal growth in 2021 remains to be seen, but investors and analysts will be watching closely in the coming months.
