Dogecoin ($DOGE) has recently surged in popularity within the cryptocurrency market, breaking through $0.2 last week. With a loyal community and increasing utility, its market capitalization has exceeded $36.6 billion. DOGE often follows Bitcoin trends, combining meme-driven volatility with long-term resilience. The current trading price is $0.2438, up 14% in 24 hours and 19% over the week, but it still has significant upside potential compared to its historical high of $0.7.
Its price trend has shown strong bullish signals for the first time since December 2020, could it repeat the rebound seen that year?
In December 2020, Dogecoin's price hit bottom and, spurred by Musk's posts on the X platform, triggered an astonishing 36,000% surge. After reaching a peak, the price fell back, marking the beginning of a new upward cycle.
Is a rebound expected after hitting bottom currently?
Today, Dogecoin has hit bottom after breaking the trend line, with prices returning to December 2020 levels. If history repeats itself, it could lead to a parabolic rise, with charts indicating that reaching $1 is not difficult, and it may even hit $2.4. Chart analysis shows a clear descending wedge pattern from November to April, indicating a potential breakout in the short term.
In terms of application, Dogecoin continues to receive high-profile support. Some Tesla merchandise now accepts Dogecoin as payment, while platforms like PayPal and Revolut have integrated Dogecoin into their trading systems, enhancing its practical use cases. It is predicted that DOGE could reach a high price of $1 during a long-term bull market, which equates to a potential 4x return on its current valuation.
After the last breakout of a similar trend, Dogecoin soared 36,000% over several months. While it suggests a rebound possibility, multiple factors make such a rise difficult to replicate. If it were to rise 36,000% again, the price would reach $72, with a market cap exceeding $20 trillion. However, with the continuous and unlimited increase in Dogecoin supply, this scenario is unrealistic. If the price breaks $1, the upward trend may end, and chasing highs should be approached with caution.
