Having fallen to $0.26 levels last week, Dogecoin (DOGE) quickly recovered and rose to $0.32 levels, currently forming a triangle formation that has the potential to create an upward breakout.
If Dogecoin continues to rise in the short term, it is likely to rise to $0.48 in the coming days. However, the 21-day moving average (DMA) and the 50-day moving average in the $0.38-0.39 range are likely to act as resistance points.
The overall crypto market experienced a decline after the US Federal Reserve (Fed) announced its interest rate hike projections, but most major cryptocurrencies have largely managed to recoup these losses. However, the fact that cryptocurrencies are still trading below pre-Fed levels suggests that the market may see further recovery.
There are many factors supporting the crypto market. Both in the US and around the world, cryptocurrency markets are expected to enter a new era. In particular, the Trump administration's creation of a strategic Bitcoin reserve for the US could lead to greater adoption of Bitcoin and other cryptocurrencies. This development could support a meme coin and altcoin season, in which case Dogecoin could maintain its leadership.
Considering that the Trump administration is planning to create a Department of Government Efficiency (D.O.G.E) headed by Elon Musk, it is quite possible that Dogecoin will benefit from this situation. This new department aims to cleanse the government of corruption and waste, and Dogecoin is expected to be on the agenda frequently.
These developments could solidify Dogecoin’s leadership in the meme coin market. With Trump taking office in January, it seems possible that Dogecoin could return to its recent highs by early 2025. Dogecoin bulls predict that the DOGE price could rise above the $0.70 level seen in 2021 and potentially reach $1.
When Dogecoin’s past cycles are examined, it seems that this rally could go far beyond expectations. Having experienced three major market cycles since its launch in 2014, Dogecoin can give clues about its performance in 2025 through these cycles.
In the analysis made with Fibonacci extensions, it was observed that Dogecoin always went beyond the 4.236 Fibonacci level and increased more than 10 times this level during the rally in 2021. The Fibonacci extension made from the bottom of the bear market in 2022 to the peak levels in 2021 suggests that Dogecoin could see at least $ 3 when looking at its past cycles. In this context, it may not be surprising that Dogecoin reached $ 10 in this cycle. In such a case, its market value could reach trillions of dollars.