Dogecoin experienced a sharp decline in the last 24 hours, losing a significant portion of its value in a harsh correction that affected the entire cryptocurrency market. What appeared to be a stable position above $0.25 quickly turned into a rapid downturn, plunging the Dogecoin price to as low as $0.148 within a day.
Despite this recent drop, crypto analyst Kaleo’s technical analysis suggests that Dogecoin is poised to reach new all-time highs. In a post on X, he reiterated his highly optimistic prediction, indicating that $6.90 is a key target for Dogecoin.
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Dogecoin Chart Reveals a Promising Future
In a post on the social media platform X, Kaleo highlighted the growing awareness within the crypto community about Dogecoin’s potential for significant growth. The accompanying chart illustrates the historical trend of Dogecoin following previous Bitcoin halvings.
After each halving event, Dogecoin has experienced substantial price increases, breaking out of long-term resistance lines to achieve exponential gains. Examples from 2017 and 2021 demonstrate these explosive price surges.
Kaleo pointed out that the current market conditions resemble the period before the 2021 bull run, when Dogecoin surpassed a crucial resistance level from its previous all-time high. This moment is highlighted on the chart as “We are here.”
Dogecoin Price Chart. Source: @CryptoKaleo on X
The $6.90 Target: Understanding Kaleo’s Forecast
While a $6.90 price target for Dogecoin may seem overly optimistic, Kaleo’s rationale is grounded in market cap analysis. He explained that his projection for Bitcoin’s value this cycle is to exceed $500,000, resulting in a $10 trillion market capitalization.
This influx of capital would flow into other cryptocurrencies, potentially leading Dogecoin to reach 10% of Bitcoin’s valuation, as observed during the 2021 market frenzy. This scenario implies a $1 trillion market cap for Dogecoin, equating to a price of $6.94 per token based on the current supply.
Despite Dogecoin’s recent price decline, which has raised concerns, the meme coin’s potential for a breakout remains. The current trading price is $0.1971, down 21.4% in the last 24 hours and hitting a low of $0.1489.
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The recent market downturn may indicate a liquidity flush before a major reversal, potentially prolonging Dogecoin’s bearish trend. A swift recovery above $0.25 is crucial for bulls to regain momentum and support a bullish outlook.
Featured image from Unsplash, chart from TradingView