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Dogecoin has yet to hit its previous $0.74 all-time high from 2021, but nevertheless, $1 has remained the target for the altcoin this cycle. This is due to the expectation of another altcoin season that could send the price on a similar run that was seen in 2021. However, if the Dogecoin price were to actually see a repeat of what happened in the past two previous bull cycles, then the $1 mark may only be a starting point, given how high the price could go.
Dogecoin Price Mirroring Past Cycles
Crypto analyst Trader Tardigrade has noticed an eerily similar pattern on the Dogecoin price chart that could suggest a rapid upward movement is coming. This pattern is similar to what was seen in the last two bullish cycles, right as the meme coin’s price was preparing for lift-off.
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As the chart shows, this pattern first emerged leading up to the bullish rally in 2017. It starts out a couple of years before as the altcoin’s price makes lower peaks and then trends down for a retest. After this, there is a period of consolidation before the trend is broken and an upward rally begins. In the 2017-2018 bull market, this pattern saw the Dogecoin price rally by more than 2,000%, going from below $0.00018 to above $0.0075 in a matter of months.
Then again, in the 2020-2021 bull market, a similar pattern had formed right before the rally, ending in a breakout from consolidation. Interestingly, this time around, the resulting breakout was even more prominent, with the meme coin’s price rising by more than 30,000%. This saw a range from below $0.002 to above $0.73 in a matter of months. This is still the highest level that the Dogecoin price has reached so far.
Once again, a similar pattern has emerged, and it looks like Dogecoin is on the brink of the next breakout. Going by the previous cycle performances and the steady uptrend, it is possible that the current breakout will see a higher ROI than previous cycles. But, there are now market cap constraints on how high the meme coin can go.
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Nevertheless, even if the Dogecoin price were to manage a similar rise like the 2017-2018 cycle, the price would reach $4 minimum from here. Going by the crypto analyst’s chart, though, he expects the Dogecoin price to actually cross the double-digit threshold, putting it as high as $12.
However, given Dogecoin’s high supply sitting above 149 billion coins, the possibilities of this happening this cycle are very slim. A $12 price tag would put the meme coin at a market cap above 1.7 trillion, something that even Ethereum, the second-largest cryptocurrency by market cap, has yet to achieve.
Featured image from Dall.E, chart from TradingView.com
