As the crypto market gears up for a historic bull run, one analyst predicts that Dogecoin could go as high as $5.
Popular cryptocurrency Dogecoin is currently trading 89% below its all-time high of $0.73. However, one analyst expects DOGE to beat its previous highs and reach new levels during the largely anticipated bull run.
Crypto trader and analyst Crypto Patel shared his predictions in a new post that reviewed similarities between Dogecoin’s buildup to the 2021 bull run and its current market performance. The chart highlights DOGE’s 2018 surge and how the cryptocurrency rode the right support and resistance range between that year and late 2020.
The consolidation was followed by a breakout and hard pump wave that pushed the asset to its current all-time high towards the end of 2021. Although Dogecoin has struggled since then, its performance has largely mirrored that of the broader crypto market.
The chart shared by the widely followed crypto analyst also shows that amid Dogecoin’s struggle, the cryptocurrency has formed new support and resistance levels similar to the previous setup. The next step in the evolution is for Dogecoin to make a perfect retest of its newly found support level before “a massive blast off,” Crypto Patel wrote.
Analyst Sets $5 As Realistic Target for DOGE
Regarding how high Dogecoin could go in the next bull run, Crypto Patel identified $5 as a realistic target. However, he reckoned that such a range would only come during the “memecoins season of the bull market.”
$DOGE Pattern is Repeating before Blasting We are waiting for a Perfect Retest.
The #DOGECOIN pattern is repeating, signaling a massive blast-off just around the corner.
A perfect retest is approaching, creating an incredible entry setup.
Once the retest is complete, watch… pic.twitter.com/KXGzlTXn6d
— Crypto Patel (@CryptoPatel) January 7, 2024
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The predicted surge to $5 would represent a more than 6,000% increase from Dogecoin, given its current market value is around $0.08. Notably, the supply and market cap dynamics also mean that the $5 target may not be easy to achieve, especially in the short term.
Given Dogecoin’s current circulating supply of 142.7 billion coins, a $5 price would put the asset’s market cap at $713 billion. For context, Dogecoin only managed an $82 billion value at its peak during the previous bull run.
Meanwhile, a $713 billion value also represents more than 40% of the current global cryptocurrency market cap of $1.6 trillion. Hence, the overall crypto market cap will have to grow significantly in the coming years for Dogecoin to reach the stated realistic target.