Dogecoin has recently shown active performance, indicating a resurgence of investor interest, with the price potentially rising by 70%. Despite the inability to break the psychological barrier of $1 in 2021, the market has gradually matured over the years with increased institutional participation. Currently, the Doge price is 67% below its historical high, and overall market sentiment is positive, with whale investors actively positioning themselves. Even though the market is shifting towards Bitcoin, liquidity may weaken, but Doge still has the potential for a new round of increases, especially in the upcoming Altcoin season.
Key Insights
. The price fluctuations of Dogecoin indicate a second healthy investor interest within 4 weeks.
. Technical trends indicate that a 70% price increase for Dogecoin is possible.
. Let's see how whales position themselves in Doge.
Dogecoin had an impressive surge in 2021 but failed to push towards the coveted $1 mark. Given its recent performance and higher competitive pressures, the king of meme coins remains attractive in the cryptocurrency industry.
Many changes have occurred since 2021, not only for Dogecoin but also for the cryptocurrency industry as a whole. This time involves more institutional activity, and the market has matured.
But does this mean that the $1 price is a target that can be achieved this time, especially with the recent excitement of the Altcoin season?
Dogecoin's price reached $0.73 during the 2021 bull market. Its news price tag of $0.23 is 67% lower than its historical peak, indicating there is ample room for recovery.
When it comes to recovery, last week, Doge Price was consistent with the bullish relief across the entire market.
What is the future of Dogecoin's price and performance?
Over the past 3 years, Dogecoin Price has experienced some significant increases. The first occurred in late March 2022, during which it consolidated 94% on March 22.
This is the first significant recovery attempt since the price collapsed from its 2021 peak.
The second major Doge rally began in late February 2024 and lasted about 4 weeks. This time it rallied approximately 200%.
Meanwhile, the third major bullish wave is commemorated in mid-October and peaks in early December 2024.
Note that each wave is larger than the previous one, and the duration between waves is getting shorter. Another major observation is that since October 2023, the pullbacks have been reaching higher lows.
Dogecoin may already be in the early stages of the fourth wave, considering the rebound since June. If it exhibits the same characteristics, the current wave should be more pronounced than the previous one.
If Dogecoin continues to follow the same rules, the next significant surge could be as large as the 2021 rally. This suggests that the Doge price could achieve new highs, possibly making $1 the biggest opportunity.
But market sentiment is flashing different signs. Polymarket data suggests that despite the potential for significant upward movement, Dogecoin only has a 19% chance of reaching its historical high in 2025.
Market sentiment and whale movements
Despite the overall bullish market sentiment, Polymarket data shows that Dogecoin has a 19% probability of breaking its historical high in 2025. However, the aggressive positioning of whale investors, particularly large buy transactions from Binance and OKX, indicates confidence in the Dogecoin market.
According to CoinGlass data, whale liquidity is showing a positive trend in the spot market, and the net buying amount in the derivatives market exceeds $123 million, indicating that investors remain optimistic about Doge's potential.
However, as Bitcoin's market dominance returns, the flow of funds to Altcoins may decrease, potentially putting pressure on Doge's liquidity. Nevertheless, there remain some potential surprises in the market, including the risk of price flash crashes.
Summary
Despite facing market uncertainties and Bitcoin's resurgence, Dogecoin still has the potential to usher in a new rally in the upcoming Altcoin season. Technical indicators suggest that Doge could rise by 70%, and the $1 target remains noteworthy. In the coming months, investors should closely monitor whale movements and changes in market sentiment, ready to seize potential opportunities.