The Cryptocurrency inspired by dogs, Dogecoin (CRYPTO: DOGE), could be on the verge of a “parabolic rally” if history repeats itself, an influential cryptocurrency expert said Monday.
What happened
The world’s largest meme cryptocurrency is up more than 3% in the last 24 hours, part of a broader rally that has seen altcoins gain significantly.
The popular analyst and trader Ali Martinez connected Dogecoin’s movements to the events of 2017 and 2021.
“In 2017, when Dogecoin began a parabolic run, it soared 212%, crashed 40%, and then soared 5,000%. In 2021, it rose 476%, fell 56%, and then shot up 12,000%,” Martínez said.
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The meme cryptocurrency has followed a similar trajectory in 2024 and has pulled back sharply in recent days. “If history repeats itself, another parabolic rally is expected,” the analyst said.
In 2017, when #Dogecoin began a parabolic run, it emerged 212%, retraced 40%, then rallied 5,000%. In 2021, it went up 476%, retraced 56%, then skyrocketed 12,000%.
Now, in 2024, $DOGE is up 440% and has retraced by 46%. If history repeats, another parabolic rally is on the way! pic.twitter.com/uhf2kMc0Id
— Ali (@ali_charts) December 23, 2024
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The story so far
Like the rest of the cryptocurrency market, DOGE has celebrated the victory of donald trump as President of the United States, and since Election Day, the meme cryptocurrency has skyrocketed 192%.
The technology tycoon Elon Musk, who actively campaigned for Trump, has been the most prominent Dogecoin investor in recent years, and casual mentions by the CEO of Tesla Inc. (NASDAQ:TSLA) to the cryptocurrency have caused the currency to skyrocket in minutes.
Furthermore, the establishment of the Musk-led Department of Government Efficiency, popularly known as DOGEhas provided further momentum to the cryptocurrency.
With the new Trump administration set to take power in 2025, developments in the new department are expected to accelerate, creating greater potential for price increases.
Additionally, a capital rotation into altcoins is expected to occur during the holiday season from Bitcoin (CRYPTO: BTC).
The popular Blockchain analysis firm, glassnodestated that Bitcoin dominance has turned bearish, paving the way for altcoins to grow at a faster pace.
Will DOGE reach $1 in the first quarter of 2025?
In 2024, Dogecoin grew by 258%, reaching an annual peak of $0.4357. As of this writing, the coin was still 56% away from its all-time high of $0.7316.
A target of $1 would require the coin to soar 211% from its current price of $0.32. Given that it showed enough promise even before the formation of the DOGE Department, it would not be ruled out that $1 was a realistic price target in 2025.
However, the likelihood of this happening in the first quarter of 2025 seems unlikely.
Image via Shutterstock
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