TLDR
- Dogecoin has experienced a 66% price decline from December 2024 highs
- Historical data shows similar 64-66% pullbacks in 2022-2024 were followed by 300-500% rallies
- Whale investors have accumulated 1.7 billion DOGE ($298 million) during the recent dip
- The SEC has delayed decisions on Dogecoin ETF approval
- Multiple analysts project future price targets ranging from $0.17 to ambitious $5-90 levels
Dogecoin, the popular meme cryptocurrency, has been on a downward trend in recent weeks. The digital asset has lost about 66% of its value since reaching highs in December 2024. This decline has pushed the price below multiple support levels.
The current price sits at around $0.16. That’s down 8.62% in a 24-hour period according to one report. Despite this fall, some analysts believe this pattern closely matches previous market cycles.
Trader Tardigrade points to historical data showing similar patterns. Since October 2022, Dogecoin has undergone two comparable retracements. Both were followed by explosive price increases.
The first major correction occurred between October 2022 and June 2023. During this period, Dogecoin’s price dropped by 64%. This decline later reversed with a 300% surge between July 2023 and March 2024.
A second correction took place from March 2024 to August 2024. Again, the price dipped by about 64%. This time, the recovery was even more dramatic with a 500% increase afterward.
These cycles suggest the current 66% decline might follow a similar pattern. If history repeats itself, another significant price increase could be on the horizon.
Whales are buying the dip
While bearish sentiment currently dominates the market, whale activity tells a different story. Large investors have purchased approximately 1.7 billion DOGE worth $298 million in just 72 hours during the recent dip.
This accumulation by major holders often precedes price movements. Analyst Lumen projects Dogecoin could surge to $0.50 if it breaks past the $0.20 mark before an ETF approval.
Speaking of ETFs, the SEC has delayed decisions on approving Dogecoin ETFs. This delay affects not only DOGE but also XRP, Solana, and Litecoin ETF applications.
Despite this setback, ETF Store President Nate Geraci remains optimistic. He believes these ETFs will eventually receive approval, which could trigger new interest in the cryptocurrency.
Some analysts have made bold predictions about Dogecoin’s future. CryptoELITES forecasts DOGE reaching $5, presenting historical chart patterns to support this claim.
Even more ambitious is DOGECAPITAL’s projection of $90 by the end of 2025. This would represent a massive increase from current levels.
Co-founder Billy Markus has suggested a 500% increase
More moderate predictions focus on a $2 price target. Dogecoin co-founder Billy Markus has suggested a possible surge to $2.30, representing a 500% increase.
Analyst Javon Marks also points to $2.30 as a potential target based on historical patterns. Meanwhile, Changelly predicts DOGE will reach this level by July 2032.
In the shorter term, Trader Tardigrade has identified technical patterns suggesting a potential rise. A 5-wave Descending Broadening Wedge on the 4-hour chart may indicate an upcoming breakout.
Following a confirmed RSI bullish divergence, Dogecoin has rebounded to test resistance levels. According to this analysis, DOGE could reach $0.1780 in the near future.
The broader cryptocurrency market has shown signs of recovery. The total market cap has reached $2.65 trillion with a 1.30% increase. Dogecoin has participated in this rebound with a 2% rise over a 24-hour period.
For Dogecoin to achieve the more ambitious price targets, several factors must align. The first step would be a return of bullish sentiment to the crypto industry as a whole.
Currently, fear dominates market sentiment. Indicators show extreme fear at a reading of 15, the lowest level in over two years. A shift in market psychology would be needed to fuel a significant rally.
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