thecryptobasic.com
Analysts continue to maintain significantly ambitious price targets for Dogecoin.
In just a few weeks, the crypto market has gone from euphoria to uncertainty to hope and back to uncertainty as anticipated market effects from a pro-crypto U.S. administration wrestle with macroeconomic headwinds.
Throughout these fluctuations, however, one constant has remained: significantly ambitious price targets for the doggy-themed meme coin Dogecoin (DOGE). Are these projections grounded in reality?
Dogecoin to $20?
On Thursday, February 6, widely followed crypto trader Javon Marks suggested that DOGE could surpass the $20 price point in the current market cycle.
For those interested in doing the maths, this represents a 7,900% increase from the current price of $0.25.
It is not the first time Marks has made this call. The analyst has called attention to this ambitious target as a possibility since at least December 28, citing varying potential catalysts.
Meanwhile, Marks is not alone. Other highly followed analysts like Ali Martinez and Ðima James Potts have also expressed similar views.
What’s driving these predictions?
Historical Price Action
In all instances, these analysts cite the memecoin’s historical price action in previous bull market cycles as the reason for their convictions.
Javon Marks specifically notes that DOGE surged 90x from its lows to hit highs of $0.018 in 2017 and 306x reach $0.74 in 2021. Notably, a continuation of this trend leads to the $20 target.
Other factors that have been cited in support of these astronomical targets include the support the asset receives from the world’s richest man, Tesla CEO Elon Musk.
The billionaire has recently been appointed leader of a non-governmental agency primarily aimed at cutting government spending, cheekily named Department of Government Efficiency (D.O.G.E.), seemingly tying the fortunes of memecoin to the controversial agency.
Wishful Thinking?
Still, as several crypto market participants have highlighted, this $20 price target for DOGE presents one major problem.
Assuming DOGE maintains its current circulating supply of 147.3 billion coins, it would need a $3 trillion market cap to hit the $20 price point—that’s more than Bitcoin’s $1.9 trillion market cap and more than 80 times the memecoin’s current market cap of about $37 billion.
What’s more? Assuming the crypto market sticks to its four-year cycle, DOGE will need to achieve this feat in only a few months.
While the crypto market is no stranger to inexplicable and explosive growth, I mean this is an asset based on a meme with a $37 billion market cap; $3 trillion does seem like a steep figure.
But if there is anything the crypto market has proven, it’s never say never.