Dogecoin (DOGE), the meme-inspired cryptocurrency, is signaling a potential breakout, with a new all-time high on the horizon.
Despite struggles in the broader cryptocurrency market, experts anticipate that DOGE could reach $2 by 2025, with even greater gains possible in the long term.
Cycle replication: A bullish outlook
According to an analysis by Trader Tardigrade, Dogecoin appears to be replicating its historical price cycles within a clearly defined ascending parallel channel.
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This recurring pattern, observed across multiple market cycles, suggests that Dogecoin may be set for a significant upward move.
Historically, DOGE’s price behavior has followed a cyclical pattern of sharp rallies followed by periods of consolidation, all within the boundaries of this ascending channel.
“Dogecoin is replicating its previous cycle. The same parallel lines (Channel) has been identified. This is no coincidence. $2 is a reasonable target for the 2025 cycle and $8 for the 2028 cycle” – the analyst said
If the current pattern holds, the analyst notes Dogecoin could hit $2 by 2025, aligning with its mid-term trajectory.
Further out, the analysis projects a long-term target of $8 by 2028, potentially marking the upper boundary of the channel.
Current market sentiment
Despite the optimistic technical outlook, Dogecoin has been relatively quiet in recent months. Data from Santiment reveals that DOGE has lost 28% of its market cap over the past month, following a brief spike earlier this year when Elon Musk temporarily changed his Twitter handle to ‘Kekius Maximus.’
Interestingly, one trader reportedly turned $55,000 into $1 million through investments in the meme token Kekius Maximus, showcasing the potential for dramatic returns in this space.
Moreover, crowd sentiment for Dogecoin is currently near its lowest point in the past year, presenting a unique opportunity for contrarian investors. If crypto markets begin to trend upward again, Dogecoin’s current undervaluation could position it for a significant rebound.
External events add complexity to Dogecoin’s outlook
Dogecoin’s price movement is also being shaped by external geopolitical factors. French President Emmanuel Macron recently accused Elon Musk of using his X platform (formerly Twitter) to influence German elections, adding an element of uncertainty to the market.
Historically, Musk’s actions and statements have caused significant price volatility for Dogecoin, making traders increasingly cautious with their positions.
At the same time, derivatives data from CoinGlass offer insights into market dynamics. Over the past 24 hours, approximately $18.63 million worth of Dogecoin positions were liquidated, reflecting heightened trading activity.
The long/short ratio of 0.9272 suggests lingering skepticism, with a slight tilt toward short positions. However, a 4.89% rise in options open interest, now at $625.48K, indicates renewed trader interest and engagement.
DOGE price analysis
At press time, Dogecoin was trading at $0.32, registering a 7% loss over the past 24 hours. On a weekly basis, the cryptocurrency has declined over 7%, reflecting muted momentum despite growing speculation about its next significant move.
Currently consolidating below $0.40, traders are closely watching whether DOGE will stage a breakout toward the $1 mark or retrace to $0.30.
The $1 level represents a critical psychological and technical milestone that could unlock further upside potential.
A successful breach could pave the way toward Dogecoin’s long-term target of $2 by 2025, supported by its historical patterns and bullish projections.
Featured image via Shutterstock
