Kevin predicts 2,500% Dogecoin rally, while another analyst questions the $1 target.

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27 Apr 2024

Crypto analyst Kevin (formerly OG Yomi) has suggested that Dogecoin (DOGE) could record a 2,500% rally in this bull cycle. As part of his analysis, he highlighted key price targets that the meme coin could attain in this bull run.

Why Dogecoin Could Rally Above $3

Kevin explained in an X (formerly Twitter) post that the foremost meme coin has never failed to “meet or surpass the 1.618 Macro FIB extension measured from previous bull market highs to bear market lows. He further revealed that the current 1.1618 FIB on DOGE’s chart is at $3.80, which means that it could meet and surpass this price level.

The crypto analyst admitted that it could be more difficult for Dogecoin to attain such heights in this bull run than in previous cycles “due to the market cap and capital saturation,” with more meme coins now in the market. However, he noted that it remains a possible outcome based on Dogecoin’s historical performance.

Based on this historical performance, Kevin also outlined $0.95 and $1.35 as other “notable” price targets the meme coin could rise to even if it doesn’t rally to $3. Kevin’s analysis paints a more bullish outlook for Dogecoin, with several other crypto analysts already predicting it could rise to $1 at some point in this cycle.

Kevin is one of those who have remained bullish on Dogecoin despite its recent price performance. He suggested that the meme coin will soon overcome this downtrend while stating that it still has “multiple weeks of upward price action away from achieving this bull market milestone.”

The crypto analyst also recently remarked that Dogecoin achieving a monthly close above $0.16 is needed to confirm its bullish continuation. According to him, a close above that level “would confirm a perfect retest of the previous bear market accumulation range” and set the “monthly momentum strongly for more upside.”

Total crypto market cap currently at $2.2 trillion. Chart: TradingView

A Different View On Dogecoin’s Price Action
Pav Hundal, lead analyst for Australian exchange Swyftx, recently warned that Dogecoin might not end up hitting $1 as many envisage. He explained that the meme coin may face significant selling pressure on its way to that price level from crypto investors who bought DOGE at the peak of the last market cycle when it hit an all-time high (ATH) of $0.73.
These investors may be looking to break even once Dogecoin hits a new ATH, which could derail its rise to $1. Like Kevin, Hundal also alluded to the saturation in the meme coin market and how Dogecoin might not command the same interest it did in previous cycles.

At the time of writing, Dogecoin is trading at around $0.145, down over 3% in the last 24 hours, according to data from CoinMarketCap

Crypto analysts have been quite bullish on the future price trajectory of Dogecoin. However, it seems this sentiment is not shared by everyone in the industry. In an interview, Pav Hundal, lead analyst for Australian exchange Swyftx, told CoinTelegraph that hoping for a $1 price target for Dogecoin could be risky.

Why Dogecoin Might Not Reach $1

In the interview, Hundal suggests that the Dogecoin price reaching $1 could be a perilous journey due to its holder base. The crypto analyst attributed this to the fact that there are a lot of DOGE holders who had purchased the meme coin in 2021 due to the hype at the time. But at current prices, these holders are currently nursing losses.

The logic is that these holders will be waiting for any opportunity to break even, and once the price starts moving up, there could be a lot of sell pressure as these investors with underwater dogs rush to sell off their holdings and secure profit.

In addition to this, the crypto analyst also believes that the meme coin might not do well as it will not see “the deep books of this cycle.” This refers to the significant drop in its open interest as liquidity has moved toward other meme coins.

However, Hundal’s bearish forecast is not shared by other analysts. Rekt Capital, in particular, has kept a rather optimistic outlook for the meme coin. The analyst believes that just because other meme coins are launching and liquidity is being distributed doesn’t mean that Dogecoin will not do well.

As the analyst mentioned, the meme coin continues to be “one of the most cyclical altcoins in the space.” What this means is that DOGE tends to repeat its performances each cycle, leading him to believe that it will go higher during this bull market.

DOGE struggles to reclaim $0.16 support | Source: DOGEUSDT on Tradingview.com

Odds Of A DOGE Breakout Are High

In addition to Rekt Capital, crypto analyst CobraVanguard, also believes that Dogecoin is set to do well. In their analysis, they show that Dogecoin has formed an ascending structure on its chart, something that has been historically bullish for the cryptocurrency.

Additionally, there has been the formation of an ascending triangle on the chart as well, another bullish signal. Given these developments, the analyst believes that the odds of the meme coin staging another bull rally from here are high.

“DOGE is in an ascending triangle which means the price is about to do a good bullish movement,” the analyst said. “The price can increase as much as the measured price movement ( AB=CD ). The break out needed for increasing further has not happened but it should happen pretty soon.”