Recently, the price trend of Dogecoin has shown formidable potential, breaking the $0.2 mark last week. However, compared to the historical high of $0.7, the current price still has a significant gap, indicating that this much-watched meme coin still has room for growth. Cryptocurrency analyst CryptoKaleo points out that Dogecoin's current price trend presents a picture not seen since December 2020, with various signs revealing strong bullish signals.
Looking back to 2020, is Dogecoin brewing a new round of rebound?
The current price trend of Dogecoin bears a striking resemblance to December 2020. In 2020, Dogecoin's price once fell into a slump, but then, relevant content released by Musk on X platform acted like a fuse that ignited a dramatic surge, with an increase of up to 36,000%. After reaching a new high, Dogecoin's price fell along the trend line until it bottomed out and rebounded, marking the end of the downward cycle and the beginning of a new upward cycle.
Now, Dogecoin's price has started to bottom out after breaking the trend line, returning to the levels of December 2020. If historical trends really repeat, Dogecoin is likely to experience a parabolic surge. From chart analysis, breaking $1 seems to be a high-probability event, and it may even challenge a high of $2.4 before this upward trend concludes.
Can a 36,000% increase happen again?
Reviewing the last time Dogecoin broke through a similar trend, it achieved a 36,000% surge within just a few months, undoubtedly providing imagination space for a similar rebound. However, in reality, various factors make such an exaggerated increase difficult to occur again. If Dogecoin were to rise 36,000% from the current price, it would soar to $72, which would correspond to a market cap exceeding $20 trillion. But it's important to note that Dogecoin's supply continues to grow without limits, making such a scenario nearly impossible in reality. A more reasonable speculation is that when Dogecoin's price breaks $1, this round of upward trend may very well declare its end.
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