Breakout Cycles and Their Implications for DOGE Price

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The Dogecoin price reaching as high as $10 has been eagerly awaited by the DOGE community, who have stayed loyal to the meme coin despite numerous price crashes. Even though Dogecoin is currently over 85% below its all-time high of $0.73 recorded in May 2021, expectations for the meme coin’s future performance remain significantly optimistic. Historically, the DOGE price tends to experience bursts of activity, and it appears that yet another opportunity for a rise is presenting itself.

The Bullish Case for Dogecoin

Crypto trader and analyst Dima James Potts took to the X platform to express a positive outlook for the Dogecoin price. His forecast considers several factors, including historical trends and levels of adoption. Nonetheless, the key takeaway is that the DOGE price may be poised for a surge.

Potts draws comparisons between the current Dogecoin price movement and those of 2017 and 2020, highlighting a bullish pattern. He notes that during previous rallies, the Dogecoin price broke above a certain threshold and ended the week above it, as illustrated in the image below:

Each occurrence of this breakout led to a parabolic increase in the DOGE price, and now, once more, the Dogecoin price has surpassed this threshold. This is seen as a positive indicator for the price according to the analyst, confirming bullish sentiment. However, the next step in this trend remains to be fulfilled—closing the week above the threshold. As the breakout happened on Sunday, the DOGE price has the remainder of the week to finalize this move.

The breakout isn’t the sole reason for Potts’ bullish stance on Dogecoin; he also cites increased adoption rates and a low price point as contributing factors that could propel the price to new heights. Additionally, upcoming technological advancements aimed at improving transaction speed and security are believed by the analyst to enhance Dogecoin’s utility and attractiveness.

A Potential 11,000% Increase?

Reflecting on the previous Dogecoin rallies and their outcomes, the analyst highlighted that each surge tends to be more substantial than the last. For instance, a 9,300% increase occurred in 2017, followed by a 29,000% increase in 2020/2021. Based on this pattern, the analyst posits that the DOGE price might also experience a notable rally this time.

The bottom of this upcoming rally is estimated to be around 11,167%, which could push the price beyond $10. In the most optimistic scenario, the peak of the Dogecoin rally could reach 40,137%, suggesting a DOGE price soaring to as high as $40.