Dogecoin rally could extend as far as $3 to $5
While a parabolic rise beyond $1 has been outlined based on the Gaussian channel, the upper limit target was calculated based on the laws of diminishing returns, roughly estimated on its previous return on investment (ROI) percentage. As illustrated in the chart, the blue curve represents the diminishing returns on a logarithmic scale, where Dogecoin is expected to top between $3 and $5 in 2025.
Historically, Dogecoin has faced a bit of resistance just below its previous all-time high range during its breakout, so there is a possibility that the memecoin might grind out a position above $0.73 at a steady pace before undergoing rapid price discovery.
Meanwhile, Santiment, a data analytics platform, highlighted that DOGE wallet activity had declined over the past day. From an onchain perspective, this is a bullish sign, as the platform mentioned,
“When a network's overall amount of wallets declines, it is a sign of FUD and capitulation from novice traders that is often a bullish indicator for the coin's price (since those liquidated coins are likely being bought by larger whales and sharks who are hodling for the long-term.”
