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 act as 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 50DMA in the $0.37-38 range may provide strong resistance, as they also align with some recent lows.
But this good atmosphere is likely to last until the end of the year. Why?
Well, the major cryptocurrencies are temporarily recovering from the sell-off triggered by the Fed last week, as the Fed's interest rate forecast is tougher 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.
There are currently many favorable factors supporting the cryptocurrency market. This is because we are about to enter a new golden age for the cryptocurrency market in the U.S. and globally.
The incoming Trump administration and Congress may significantly accelerate the adoption of Bitcoin and other major cryptocurrencies, especially as the government seeks to establish a U.S. strategic Bitcoin reserve.
Therefore, the emergence of a new meme coin/alcoin season has fertile ground. Since Trump's overwhelming victory in the elections, we have seen flashes of such coins.
Dogecoin is the oldest and currently the largest meme coin, which will undoubtedly lead the future meme season.
Musk's new department aims to reduce government fraud and waste, which will cause huge controversy and almost constantly be in the news spotlight.
This almost guarantees Dogecoin's leading position in the 'mind share' of the meme coin market, ensuring continued market leadership.
How much will Dogecoin (DOGE) rise in this cycle?
Therefore, with Trump's return to the White House, it is highly likely that the Dogecoin market will rebound to recent highs in early 2025.
Bulls hope to eventually rebound above the historical high of $0.70 in 2021 and may potentially soar to $1.0 for the first time.
However, could this be the end of Dogecoin? Analysis of Dogecoin's past cycles suggests that bulls need to aim for bigger and higher targets, and this rebound may far exceed many people's expectations.
Since its establishment in 2014, Dogecoin has gone through three market cycles, which may provide clues for Dogecoin's development in 2025.
When the Fibonacci extension is drawn upward from the previous bear market low to the previous 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 10 times during its rebound in 2021.
The Fibonacci extension level of 4.236 from the low of the 2022 bear market to the high of 2021 suggests that Dogecoin should at least reach $3 per token in this cycle.
But historical experience shows that Dogecoin's price often exceeds this level. Considering this situation, it is not unreasonable to expect Dogecoin to reach $10 in this round.
Of course, this means trillions of dollars in market cap, which may be a bit excessive.
But Dogecoin can definitely rise 10 times from the current level, reaching a market cap of $100 billion, making it a strong candidate for the best meme coin to buy right now.
