According to chart analysis, Dogecoin (DOGE) may rebound quickly, returning to the highs of late 2024, with even greater gains expected in 2025.
Last week, Dogecoin's price briefly fell to a low of $0.26 but quickly rebounded to $0.33, forming a triangular pattern that could signal a breakout.
This means that in the coming days, the price of Dogecoin may rebound, approaching the recent high of $0.48.
However, the range of $0.37 to $0.38 may be a strong resistance level, as there are 21-day and 50-day moving averages here, which also coincide with some recent lows.
This positive atmosphere may last until the end of the year, but why?
First, although the Federal Reserve's interest rate forecasts are more hawkish than expected, most cryptocurrencies are gradually recovering from last week's sell-off triggered by the Federal Reserve. As it stands, the prices of many major cryptocurrencies are still well below the levels seen before the Federal Reserve's hawkish meeting, which indicates that there is still room for a market rebound.
There are currently many favorable factors supporting the development of the cryptocurrency market, especially as we are entering a 'new golden age' for the U.S. and global crypto markets.
The incoming Trump administration may greatly promote the adoption of Bitcoin and other major cryptocurrencies, especially since Trump plans to establish a Bitcoin strategic reserve. Moreover, Musk's 'New Government Efficiency Department' (DOGE) will be established under Trump's leadership, which will undoubtedly drive the future meme coin craze.
Additionally, Dogecoin (DOGE) whales have started buying like crazy again!
In the past three days, whales have purchased 270 million Dogecoins, indicating increased market activity and potentially suggesting an opportunity for Dogecoin to rebound. The surge in whale trading volume and the significant volatility in Dogecoin prices indicate that whales have considerable influence on the market.
According to historical data, similar whale purchases typically occur before a market rise, which also suggests that DOGE may be poised for an upward trend.
This indicates that large-scale purchases are driving the market towards an upward direction. If this trend continues, prices could keep rising.
Whale-dominated market dynamics, especially in bulk trades, may create greater buying pressure, thereby prompting DOGE to rebound in a broader market.
The triple force pattern of DOGE prices
Looking at Dogecoin's daily chart, you will find that its key trading pattern aligns with the so-called triple force (PO3) strategy. Simply put, this strategy includes three phases: accumulation, manipulation, and distribution.
The accumulation phase began in early November, during which prices were relatively stable with little volatility, indicating that investors were quietly buying DOGE but not significantly pushing prices up.
By mid-December, the market entered a manipulation phase. At this point, prices showed significant volatility, with the aim of artificially suppressing prices to intimidate some weaker investors and see if newcomers could withstand the pressure.
It is expected that Dogecoin will soon enter its final phase, which is the distribution phase. Historically, if this distribution phase resembles previous patterns, prices may continue to rise, potentially approaching or exceeding previous highs, with speculative targets possibly reaching $1.
Recently, Dogecoin's active performance has sparked market speculation, with many believing it is about to enter a bullish trend. The heated discussions on social media and the market sentiment may further accelerate this trend.
How much can Dogecoin's price rise in this cycle?
With Trump possibly returning to the White House, it is expected that the Dogecoin market will rebound in early 2025, potentially returning to recent highs. Bulls hope to see prices break the historical high of $0.70 again, and possibly even touch $1 for the first time.
But will this be the end of Dogecoin? Analyzing Dogecoin's past cycles suggests that bulls should aim for larger targets. This rebound may exceed many people's expectations.
Since 2014, Dogecoin has gone through three complete market cycles, providing clues for us to predict its development in 2025.
By plotting Fibonacci extension lines between the previous bear market lows and highs, we can see that each rebound has exceeded the 4.236 Fibonacci level, with the rebound in 2021 surpassing that level by more than ten times.
Based on the Fibonacci extension line drawn from the bear market low in 2022 to the high in 2021, this time Dogecoin should reach at least $3 per token to meet the expectations of the current cycle.
However, based on historical experience, the price of Dogecoin often exceeds expectations and even surpasses Fibonacci extension targets. Therefore, expecting Dogecoin to reach $1 this time is not unrealistic, although this target implies a market cap in the trillions of dollars, which does seem a bit exaggerated.