Dogecoin had an impressive rally in 2021, but it still has not been able to reach the coveted $1 mark. The "king" of meme coins remains appealing in the cryptocurrency space, considering recent performance and despite increasing competition.
A lot has changed since 2021, not just for Dogecoin but for the entire cryptocurrency industry. This time, institutional participation is higher and the market has matured.
But this means that the price level of $1 is an achievable target this time, especially with the excitement of the latest altcoin season.
The price of Dogecoin peaked at $0.73 during the previous rally in 2021. The price of $0.23 at the time of reporting is a 67% drop from the historical peak, meaning there is still plenty of room for recovery.
Speaking of recovery, the price of DOGE rose about 17% last week in line with the overall bullish trend of the market.
Price and performance of Dogecoin: What will happen next?
The price of Dogecoin has undergone several strong rallies over the past 3 years. The first rally occurred at the end of March 2022, when the price rose 94% in just one day (March 22).
This is the first major recovery effort after a steep price drop from the 2021 highs.
The second largest DOGE rally began around the end of February 2024 and lasted about 4 weeks. This time, the price increased by about 200%.
Meanwhile, the third major bullish wave began in mid-October and peaked in early December 2024.
Note that each wave is larger than the previous one and the time between waves is also shortening. Another important observation is that pullbacks have reached higher lows since October 2023.
Dogecoin may be in the early stages of the fourth bullish wave, considering the recovery since June. If similar characteristics occur, the current wave will be more pronounced than the previous wave.
The next major rally could be as strong as the 2021 rally if Dogecoin continues to follow similar rules. This suggests that the price of DOGE could reach a new ATH, and this could be the biggest opportunity for this coin to reach the $1 price.
Although the upside potential is huge, market sentiment shows different signs. Data from Polymarket shows only a 19% chance that Dogecoin will surge to a new all-time high in 2025.
DOGE whales continue to show interest in the meme coin.
Although the most recent weekly rally was not as strong as the one in July, the market still maintains an overall bullish trend for the price of Dogecoin. This is also true for the whale group, which shows no signs of strong selling pressure.
Data from CoinGlass shows that whale flows in the spot market are increasing. Binance leads with $19.25 million in purchases made in the spot market over the weekend. OKX spot trading had about $5.6 million in purchase spreads and $115,450 on Coinbase.
Derivative products are also up on both Binance and OKX, with over $123 million in net purchases. This indicates caution in the context of recent increased leverage liquidations.
This leading meme coin has also seen significant growth in dominance, over 9% last week. This confirms that the coin is receiving considerable attention from top altcoins.
When discussing the issue of dominance, it is noteworthy that Bitcoin's dominance has returned to over 60% and is increasing at the time of observation.
This means that attention is shifting away from altcoins and back to BTC, indicating that the liquidity flowing into altcoins, including Dogecoin, is likely to weaken.
However, DOGE traders should also be cautious of potential surprises, including the possibility of a flash crash.