Dogecoin Price Set to Blast Past $3.0 Soon? Here’s Why That’s Likely

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Michael Davis

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Michael Davis

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Crypto market analyst & on-chain data enthusiast. Breaking down trends, narratives & cycles in BTC, alts, and macro. 🧠 Deep dives, smart money moves & alpha for the coming bull run. Stay ahead of...

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December 16, 2024

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As the Dogecoin (DOGE) price consolidates near $0.40, bullish catalysts for the world’s largest meme coin continue to build in the background, suggesting a new leg higher could be just around the corner.

Since slipping below a short-term uptrend, and amid ongoing struggles with resistance in the form of the 21DMA, DOGE remains at risk of a deeper short-term pullback.

A retest of its 50DMA around $0.33, which happens to also coincide with a key support zone from back in 2021, could be on the cards.

That said, DOGE futures funding rates are currently at reasonably low levels, suggesting any speculative excess that had built up in recent weeks has mostly vanished, reducing near-term sell-off risks.

Per coinglass.com, funding rates for leverage futures positions lasted around 0.01%, which is in line with their September-October levels, and went down sharply from the highs above 0.09% reached earlier this month.

Dogecoin Price – New Upside Coming?

Even if a short-term Dogecoin price dip did come, expect it to be quickly gobbled up by the bulls – headlines related to Elon Musk/Vivek Ramaswamy’s upcoming Department of Government Efficiency (D.O.G.E) agencies continue to come thick and fast.

And that’s only likely to ramp up when the Trump administration lands in the White House in January.

It’s all but guaranteed that DOGE will retain a commanding portion of the meme coin market’s “mind share”. Dogecoin price risks thus remain strongly tilted to the upside.

A retest of the 2021 record highs, at $0.73905 per TradingView data, is the first major resistance level that the bulls will be targeting.

But Dogecoin is poised to go a lot higher. A new golden age for crypto beckons with a new pro-crypto US administration and Congress soon to arrive.

Chatter relating to the potential establishment of strategic Bitcoin reserves continues to grow all across the world.

With crypto adoption set to accelerate and the industry boom in the coming years, Dogecoin will remain the leading meme coin.

How High Can Dogecoin Go?

The question then becomes how much higher will Dogecoin go versus its 2021 highs.

$1? Highly likely. DOGE could investors need to start thinking bigger.

A look at the performance of Dogecoin during past cycles could be informative here.

Dogecoin has arguably been through three market cycles since its inception in 2014, and the cycles can offer clues.

When drawing a Fibonacci extension upwards from the prior bear market low to the prior bear market high, it can be seen that Dogecoin has always rallied well beyond the 4.236 Fibonacci level, exceeding this Fibonacci extension by over 10x during its 2021 rally.

The 4.236 Fibonacci extension level from the 2022 bear market lows back to the 2021 highs suggests that Dogecoin should at least hit $3 per token this cycle.

But as history has shown, Dogecoin has routinely blown well past this level. Given that context, it wouldn’t be unreasonable to expect a $10 Dogecoin price this cycle.

Of course, that would imply a multi-trillion-dollar market cap, which might be a bit much to ask.

But Dogecoin could definitely 10x from current levels to reach a market cap in the $100s of billions.