Dogecoin Price Could Reach $5 Based on Historical Trends
The cryptocurrency market has experienced consolidation over the past week, with significant corrections in both Bitcoin and Dogecoin. Bitcoin retraced from its all-time high of $108,135 on December 17 to around $93,000. Dogecoin similarly declined from recent highs near $0.48 to approximately $0.30.
The 800-Day Trend: A Case For Dogecoin’s Correlation With Bitcoin
Bitcoin and Dogecoin exhibit a strong correlation, especially during market cycle transitions. Historically, Bitcoin leads inflows and outflows in the crypto market, with Dogecoin closely mirroring its price trends.
A crypto analyst noted that the days between Bitcoin’s cyclical bottoms and Dogecoin’s subsequent peaks follow a consistent pattern. Technical analysis indicates an average interval of about 800 days between Bitcoin's lows and Dogecoin's major peaks. This trend first appeared in 2017, when Dogecoin peaked 868 days after Bitcoin’s bottom in 2015. In the 2021 bull rally, Dogecoin reached its all-time high of $0.7316 875 days after Bitcoin’s low in 2019.
What Lies Ahead For Dogecoin Price?
The current market cycle mirrors previous patterns. Bitcoin's latest bottom was at $15,422 during the first half of 2023, after a lengthy bear market. Since then, Bitcoin has entered a bullish phase, gaining momentum throughout 2023 and into 2024.
Considering the 800-day trend, Dogecoin's next peak could align with approximately 800 days from Bitcoin's 2023 bottom, suggesting a potential peak for Dogecoin around March or April 2024. Historical performance indicates a price target of $5 for Dogecoin within this timeframe.
Currently, Dogecoin is trading at $0.32, down by 1.8% in the last 24 hours. If historical trends repeat, Dogecoin’s price could increase by 1,460% to reach new all-time highs. While this projection appears optimistic, other analysts have speculated that Dogecoin could potentially reach as high as $20 by 2025.
