Dogecoin is still facing strong bearish pressure amid a market decline, but as the price is still fighting to hold the $0.2 support level, there is still the possibility of a rebound from here. There is also the fact that the meme coin appears to be following a trend that has been seen over the past two bull cycles, suggesting that it could experience a similar rebound. If this happens, Dogecoin price could then experience a rebound that could propel it to new all-time highs.
Why Dogecoin Price Could See an 800% Rally
Bitcoinsensus published an interesting Dogecoin price crash, comparing current performance to previous cycle performance. This shows the formation of bullish and bearish fractals that have formed over the past two years, leading to a similar outcome in terms of price.
The first of these fractals appeared between 2023 and 2024, with the initial surge resulting in a 300% price increase. Once the high was established, there was a steady correction that caused the altcoin to lose almost all of its gains. However, this simply led to the formation of the next fractal.
The next time the fractal appeared was towards the end of 2024, and by the time the rally ended, the price of Dogecoin had increased by 500%, leading to its highest levels since 2021. Then, as before, the price correction resulted in a loss of most, but not all of its gains, suggesting that the formation of another bullish fractal is about to follow.
One interesting thing about this fractal formation over time, however, is the fact that there has been a consistent acceleration in gains each time. After the move from 300% to 500%, the analyst estimates that the next breakout of this fractal would result in an 800% price increase.
As Dogecoin price looks to replicate this cycle breakout, it could be on track to create a new all-time high. An 800% increase would ultimately mean surpassing the coveted $1 level, and the peak would be somewhere around the $1.4 level before plateauing.
However, the price of Dogecoin remains heavily dependent on the performance of the price of Bitcoin and the general crypto market. In this case, the price of Bitcoin should continue to rise, as another crash could cause the price of Dogecoin to rise again along with the altcoin market, thus invalidating the bullish thesis.
Featured image of Dall.E, chart by TradingView.com
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