Emily Walker
Recently, Dogecoin has experienced a notable increase in price activity, prompting many in the cryptocurrency community to speculate on its continued growth leading up to the year’s end. Analyst Ali Martinez recently forecasted that Dogecoin could soar to as high as $23.26, suggesting a strong upward trend.
In his analysis shared on X (formerly Twitter), Martinez noted that Dogecoin’s current movement resembles the early phases of a bullish parabolic trend. His positive outlook is bolstered by factors such as increased activity from cryptocurrency whales, rising interest from retail investors, and past price trends indicating significant potential for growth.
Indicators of a Dogecoin Price Surge
Martinez pointed out a remarkable spike in Dogecoin acquisition by large holders, or whales, who purchased around 140 million DOGE tokens worth approximately $56 million in a single day on November 15. Such whale accumulation is often a strong indicator of confidence in the cryptocurrency’s future. Typically, a surge in whale transactions signals potential price movements ahead.
In addition to whale actions, Martinez observed that retail investors are just beginning to explore Dogecoin’s capabilities. He contested beliefs that the cryptocurrency’s price increase is limited by its market capitalization or a “sell the news” sentiment, noting that current interest has yet to reach levels seen during the 2021 bull market. This indicates that there is still considerable demand for Dogecoin, suggesting room for further price escalation.
Despite a staggering 360% rise recently, Martinez insisted that Dogecoin is not yet in overbought territory. He referenced the MVRV metric, which has reset to 45.65% following the previous week’s correction, indicating that the cryptocurrency has not hit a point of immediate selling pressure, allowing for further price increases.
Additionally, the Dogecoin price trajectory is expected to rise further, particularly following the political appointment of Elon Musk in Donald Trump’s Department Of Government Efficiency. Connections to this department have already triggered a spike in Dogecoin’s value, and the price is anticipated to keep rising as the new administration takes the reins.
Projected DOGE Price Levels
In his technical analysis, Martinez detailed Dogecoin price predictions based on historical trends and Fibonacci retracement levels. He identified potential price targets of $2.40 and $18. Furthermore, he highlighted Fibonacci extension levels of 1.618 and 2.272, reaching $3.95 and $23.36, respectively. These projections are informed by similar price behaviors observed during past bull runs in 2017 and 2021.
However, achieving these ambitious targets may not be straightforward. Past parabolic surges of Dogecoin in 2017 and 2021 featured multiple corrections, with pullbacks between 40% to 84% common during those periods.