The Dogecoin price has witnessed an impressive activity surge in the past few weeks, with many crypto participants looking at a continued surge until the end of the year. In a recent analysis shared on X (formerly Twitter), crypto analyst Ali Martinez has projected a significant surge in the Dogecoin price, suggesting it could continue on this run to reach as high as $23.26.
According to Martinez, Dogecoin’s current trajectory mirrors the beginning stages of a parabolic bull run. His optimism is driven by many factors, including significant whale activity, growing retail investor interest, and historical price patterns that point to substantial growth.
Factors Pointing To A Parabolic Surge In The Dogecoin Price
Martinez highlighted the recent surge in Dogecoin purchases by whales, who recently bought around 140 million DOGE tokens within 24 hours, equivalent to $56 million on November 15. Whale accumulation is one of the biggest signals of confidence among large holders in a cryptocurrency’s outlook. As such, an increase in whale activity tends to precede significant price movements.
While whale activity is crucial, Martinez also pointed out that retail investors are only beginning to recognize Dogecoin’s potential. He dismissed claims that the Dogecoin price growth is constrained by its market cap or a “sell the news” mentality, noting that interest in Dogecoin has not yet reached the levels witnessed during the 2021 bull market run. This, according to him, suggests significant untapped demand that shows the Dogecoin price has more room to grow this cycle.
Furthermore, despite a recent 360% price increase, Martinez argued that Dogecoin remains far from overbought territory. He pointed to the MVRV indicator, which has reset to 45.65% after the correction last week. This observation suggests that the cryptocurrency has room for further upward movement without facing immediate selling pressure.
Beyond these factors highlighted by Martinez, the Dogecoin price is on track to continue to increase in light of the recent political appointment of the Dogefather, Elon Musk, in Donald Trump’s Department Of Government Efficiency. Links to the department have already caused a spike in the Dogecoin price, and this is set to keep increasing after the new administration eventually comes into power.
DOGE Price Targets
Pivoting to technical analysis, Martinez revealed a Dogecoin price prediction range based on Dogecoin’s historical patterns and Fibonacci retracement levels. He identified key price targets at $2.40 and $18. He also cited Fibonacci extension levels of 1.618 and 2.272 from the 2022 bear market low of $0.049, which correspond to $3.95 and $23.36, respectively. These targets are grounded in similar behavior of the Dogecoin price during its bull runs in 2017 and 2021.
He cautioned, however, that achieving such levels would not be without challenges. Dogecoin’s previous parabolic runs in 2017 and 2021 were highlighted by multiple corrections, with pullbacks ranging from 40% to 84%.
Featured image created with Dall.E, chart from Tradingview.com
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