Dogecoin, the OG meme coin, has witnessed a massive surge in the past few weeks. Analysts are comparing the growth spurt to 2021’s meteoric rise.
As DOGE’s rally continues, traders wonder whether the coin can hit its all-time high of $0.73. It has been almost three years since the meme token reached its peak. The current market analysis clearly indicates that multiple factors are steering the coin.
The primary factor worth noting is the massive token movements by DOGE whales. The latest on-chain data shows that whales transferred 330 million+ DOGE tokens in early March. The development hinted at possible accumulation, paving the path for a price increase.
Another crucial factor playing into DOGE’s surge is the hype generated by Elon Musk. The self-proclaimed Dogefather recently joked about buying Tesla using Dogecoin. Although the proposition was made in humor, it boosted DOGE’s market standing. The meme coin has been known to make massive jumps following Musk’s statements.
Doge has also been known to jump in price shortly after Bitcoin halving. The coin did so back in 2020, ultimately leading to its all-time high in 2021.
Interestingly, Dogecoin’s current price movement resembles that of 2020 fractals, in which the cryptocurrency’s value surged by over 15,800% in less than six months, reaching an all-time peak of $0.73. Fractals can be defined as repetitive price movements that sometimes hint at future trends.
DOGE price prediction by technical analysts indicates that the coin is on a similar path to 2021, which can lead to even more price hikes. However, the sentiment is not universal, as many analysts are preaching caution against bling optimism. Among these analysts lies Rekt Capital, which warned users about past performance not being the most concrete indicator of future outcomes.
The analyst requested traders to look at the MVRV (Market Value to Realized Value) ratio. The metric compares the market cap to the price at which holders acquired the coin. The current MVRV ratio hints at DOGE being slightly overvalued.
Another metric, open interest, used to reflect the amount of outstanding derivative contracts (options and futures) for Dogecoin, captured a surge recently. The development hints at increased leverage in the Doge market, amplifying the price movement in both directions.
Dogecoin future outlook: Can it rally more than $0.21?
Cryptocurrencies are volatile by nature, making them hard to predict. However, the trajectory that DOGE is currently on strongly suggests an impending bull run.
The coin is following the 2021 fractal pattern, and with BTC halving incoming, the meme token is expected to surge in price. Several experts even expect the coin to hit as high as $0.3.
The coin is currently trading at $0.211, accumulating an 15.19% surge in the past 24 hours. If the rally continues, the original meme coin can shatter its previous records in 2024 itself.
In conclusion
Dogecoin’s ongoing bull rally is fueled by several factors, including the rising whale movement, Elon Musk’s endorsement, and a repeat of historical price patterns.
While many experts expect the coin to reach new heights, some warn traders to tread cautiously. Meme coins like Doge will likely boast excessive optimism, potential overvaluation, and high leverage.
Whether DOGE can regain its 2021 glory and reach the all-time high of $0.73 is still up in the air. One thing is certain: the meme coin is the source of speculation and fascination in the crypto market.