thecryptobasic.com
Dogecoin (DOGE) has recently been one of the hottest meme coins, driven by explosive price movements. Yesterday, Dogecoin nearly hit the $0.30 mark after surging 37% on Sunday from $0.2173 to $0.2966.
Remarkably, considering that Dogecoin traded at just $0.1486 a week ago, the token has skyrocketed 99.6% in under seven days. During this time, Dogecoin has also improved its market ranking, now standing as the sixth-largest cryptocurrency by market cap, surpassing XRP and the USDC stablecoin.
Despite the recent gains, analysts like Ali Martinez believe that Dogecoin has not yet reached its full potential. In an analysis shared over the weekend, Martinez suggested that DOGE is on the verge of a parabolic run that could clear unprecedented price levels.
Martinez’s optimism is grounded in historical patterns, citing past price movements and Fibonacci retracement levels. According to Martinez, Dogecoin’s potential peak could fall within the 1.618 to 2.272 Fibonacci levels, suggesting a price range between $3.95 and $23.25.
Dogecoin’s Historical Pattern Analysis
The accompanying chart shows that Dogecoin recently broke out from a long-standing resistance trendline, a pattern that has occurred during previous bullish cycles. In fact, a similar breakout in Dogecoin’s history saw the price explode by 16,000%.
In the 2017–2018 cycle, Dogecoin broke its downtrend after 1,155 days of bearish performance. This breakout occurred when the price surpassed $0.0002, leading to a massive 8,933% surge by the end of the cycle in 2018, adding $0.01857 to the price, which was near the 1.618 Fibonacci level.
Similarly, during the 2020–2021 cycle, Dogecoin saw an even more dramatic price surge, boosted by Elon Musk’s endorsements. Dogecoin had entered another 1,096 days of bearish performance before breaking out at around $0.003.
Thanks to Musk’s influence, Dogecoin experienced an astonishing 15,534% rally, bringing its price close to the 2.272 Fibonacci level at $0.734.
Given that the 1.618 and 2.272 Fibonacci levels have coincided with Dogecoin’s peak prices in the past two cycles, Martinez suggests that the meme coin could either surge to $3.95 (at the 1.618 level) or $23.25 (at the 2.272 level).
Price Target Analysis
Currently, with DOGE trading at $0.2884, reaching the lower target of $3.95 would represent a massive 1,269% increase from current levels.
On the other hand, the upper target of $23.35 would require an even more substantial rally, representing a 7,961% gain.