Cryptocurrencies stabilized a bit on Wednesday after slipping in the past two consecutive days. Dogecoin price rose slightly as traders anticipated Elon Musk’s DOGE success. One analyst predicted that the dog-themed coin would jump to $4.20 in the ongoing crypto bull run.
Analyst Predicts Dogecoin Price Could Hit $4.20
Dogecoin price has been in a strong uptrend in the past few weeks as it jumped by almost 500% between August 5 and November 23. This rally coincided with the broader uptrend in the crypto industry after Donald Trump won the election and appointed Elon Musk to lead the Department of Government Efficiency (DOGE).
In an X post, CEO, a popular crypto investor with over 511,000 followers, predicted that the DOGE price would jump to $4.20 in the ongoing cycle. If that was to happen, it would mean that the coin will rise by 976% from the current level. Such a move is possible in the crypto industry since DOGE has already risen by 160% in the past few days. If it happened, DOGE’s market cap would jump from the current $57 billion to over $613 billion.
For this to happen, cryptocurrencies need to be in a strong bull run, which would attract a sense of greed in the market. Also, Bitcoin, the biggest cryptocurrency in the market would need to continue its uptrend. In most periods, altcoins like Dogecoin thrive when Bitcoin is in a strong rally.
Other cryptocurrencies are highly bullish on the Dogecoin price. In a post, The Cryptomist noted that the coin was forming a falling wedge pattern. This pattern forms when an asset forms two descending and converging trendlines. It usually leads to a strong breakout when the wedge is about to converge.
Dogecoin Wedge Pattern
DOGE Price Chart Points To Eventual Breakout
While talk of DOGE price surging to $4.2 is good, the most realistic situation is to first target the psychological point at $1.
The weekly chart shows that the value of DOGE has been in a long bullish trend as it jumped for six consecutive weeks. In most cases, assets tend to take a breather after such a long bull run.
It remains above the important resistance level at $0.2278, its highest point in March this year. Moving above that point invalidated a double-top pattern whose neckline was at $0.0836. The coin remains significantly higher than the 50-week and 200-week moving averages.
More Dogecoin price upside will be confirmed if it jumps above this month’s high at $0.4790. Such a move will raise the chances of it rising to its all-time high of $0.7393, which is about 87% above the current level.
Dogecoin Price Chart
This Dogecoon price prediction will become invalid if it drops below the key support at $0.2833, the 61.8% Fibonacci Retracement point. Such a move will raise the possibility of it dropping to $0.20.
The post Can Dogecoin Price Realistically Hit $4.20? appeared first on CoinGape.
