Dogecoin price could be preparing for what looks like another remarkable rally after that recent performance since the beginning of January. Dogecoin, which spent most of the last two weeks of December in a slump, has regained momentum this month and is now about to break above the $0.40 mark again.
According to cryptoanalyst Trader Tardigrade, Dogecoin is currently mirroring its movements in the last bull cycle. In particular, price movements suggest that the meme coin could be preparing for a significant rally to reach new record highs in the coming months.
DOGE plays out familiar price patterns
At the time of writing, Dogecoin is trading just below the $0.40 mark. This marks an impressive recovery after the recent drop to $0.267 in mid-December. Interestingly, this decline saw the Dogecoin price retreat by around 45% after it hit a multi-year high above $0.48 at the beginning of December. This Dogecoin price spike was on the back of an impressive rally that has been underway since October, with the meme coin breaking past several price resistance levels.
As pointed out by Trader Tardigrade and shown in the chart below, the recent 45% correction that Dogecoin went through is a clear copy of a similar play out in 2021. At the time, Dogecoin was on an upward trajectory but encountered a temporary slowdown marked by a retracement of 45 .86%. Despite this brief correction, Dogecoin managed to regain its bullish momentum and continued an extraordinary rally that smashed its all-time high at the time. This bull run was so massive and eventually ended with Dogecoin breaking its previous record high and peaking at $0.7316.
Is a Dogecoin price rally to $6 possible from here?
The similarities between the current price structure and the 2021 cycle suggest that Dogecoin may eventually undergo another similar rally and break its previous record. If a similar rally were to take place, the forecast, according to the 2021 rally, will put Dogecoin at a price target of around $6 in mid-2025.
At the time of writing, Dogecoin is trading at $0.386, up about 22% over the past seven days. If Dogecoin were to reach the $6 price target, it would translate into an increase of around 1,450% from the current price level.
Several factors must align for Dogecoin to achieve such an ambitious goal. Key among these is sustained buying pressure from private and institutional investors, a increased electoral activityprojected crypto-friendly policies from the government, and renewed interest in meme coin across social media.
Featured image created with Dall.E, charts from Tradingview.com
