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One of the favorite meme coins has again been in the headlines. Recent price action suggests that Dogecoin might probably be bottoming as it sets itself in for what could turn out to be a big bull run.
This has market observers looking toward some specific technicals that have signaled price surges in recent weeks. These indicators, marked through green and red lines, are currently penetrating, which raise hopes that the rally could start from the first week of September.
There are also reasons for optimism stemming from the cyclic nature of Dogecoin’s price rise. Recently, analysts have noted that DOGE has a sharp hike in price each three years.
$DOGE $10+ DOGECOIN?!
Recent weeks price action has established a bottom for #DOGECOIN. Historically, bull runs begins when the green and red lines intersect, leading to a price surge in the following weeks. I anticipate a similar pattern this cycle, potentially starting as… pic.twitter.com/7JkYs7rUDn
— Ðima James Potts (@DimaPotts36) August 26, 2024
In the first cycle, which started in 2016, Dogecoin’s price hiked 1.5 times at the end of the year. The second cycle, which began in 2020, saw that price multiply 2.5 times. If the same cycle continues, then experts say DOGE may finish off 2024 at nearly $0.31, over 3.5 times higher than where it is starting out at $0.09051.
Social Media Buzz And Musk’s Influence
Dogecoin is surging with the rise in price, and so is the ongoing social media buzz. DOGE has been trending on X for some days now. The development is partly occasioned by a recent tweet from Elon Musk, the Chief Executive Officer of SpaceX and Tesla.
I am willing to serve pic.twitter.com/BJhGbcA2e0
— Elon Musk (@elonmusk) August 20, 2024
In these regards, however, not everyone might be convinced that the momentum now surrounding Dogecoin will follow through. Some analysts do point out that while Dogecoin has made huge leaps — including amassing a market capitalization of over $90 billion — its inflationary supply status and weakening cultural importance may weaken its hold on the meme coin market at a later date.
The speculations continue to rise that a new meme coin could take the lead over Dogecoin in this cycle. Combined market capitalization for DOGE and SHIB, according to CoinGecko, now makes up only 57% of the total market capitalization of all meme coins, which is well retracted from its highs.
2025: The Wild Card Year?
Looking ahead, 2025 might be an important year for Dogecoin. Historically speaking, the fourth year of the cycle has been when DOGE saw the most substantial price increases. In 2017, during the first cycle, Dogecoin’s price went up as much as 9,000%. The second cycle in 2021 was even more outrageous: an 18,000% increase. If this were to hold good, then 2025 would promise to be a real roller coaster for investors.
Yet, if these projections sound a bit too bold, it has to be remembered that past performance is not a guarantee of future results. Be that as it may, the cyclical analysis indeed provides an intriguing framework, but the market for meme coins is notoriously volatile and unpredictable.
Bearish Sentiment And The Road Ahead
Interestingly, while some analysts are predicting a bullish future for the cryptocurrency, others are more conservative. According to CoinCodex, the current sentiment is bearish, with Dogecoin expected to drop 3.84% and reach $0.090315 by September 25, 2024. The Fear & Greed Index currently reads 55, which suggests that investors are leaning toward optimism but with caution.
Source: CoinCodex
The future of Dogecoin is as unexpected as its meme-generated beginning. With its large base and going toe-to-toe with Elon Musk in its visibility, market conditions depend on many things that range from global economic factors to the mood of online communities. As 2025 draws near, one thing is for sure: this will be one wild ride for DOGE.
Featured image from Vietnam Insider, chart from TradingView
