Top Analyst Says a $6.24 Price Remains a Possibility for Dogecoin

Market watcher Ali Martinez has boldly asserted that a 2,871% increase for Dogecoin remains a possibility this season.

He expressed this sentiment in a new analysis on Wednesday. The analyst first highlighted that Dogecoin (DOGE) continues to trade within a long-term ascending parallel channel. This suggests the meme coin market leader maintains a bullish structure despite recent volatility.

Notably, DOGE is currently trading at $0.2100, up 5% today but down 20% over the past 30 days. The recent gain has erased all losses recorded in the last week.

Meanwhile, the meme coin is hovering near a major support level that could dictate its next big move, according to Martinez.

Dogecoin Journey to Higher Levels

In his tweet, Martinez stressed that DOGE’s lower boundary support at $0.16 remains a key level to watch. He noted that if the bulls maintain a strong defense of this level, it could trigger a rebound toward $2.74, which is the mid-channel target.

Notably, this price target also takes inspiration from Fibonacci levels on the DOGE weekly chart, specifically coinciding with the 1.272 extension.

At the time of the analysis, Dogecoin was trading at $0.203, nursing a massive 24-hour loss of 15%. However, at press time, Dogecoin bulls are dominating the market trend.

That said, in Dogecoin’s journey to $2.74, it must overcome more immediate resistance at $0.56958, which aligns with the 1.00 Fibonacci level.

Dogecoin needs a rally of 171% to break this resistance and a more formidable 1,205% run to reach $2.74. Martinez argued that if momentum builds further, DOGE could extend gains toward the upper boundary of $6.24. This level aligns with the 1.414 Fibonacci level.

For context, from its current price, reaching $6.24 would require Dogecoin’s price to soar by 2,871%. In this hypothetical scenario, its market cap would be $925 billion, compared to current levels of $31 billion.

DOGE Capability to Reach These Levels

Notably, in the last cycle, Dogecoin’s price surged to $0.7376 amid a highly sensational rally fueled by Elon Musk’s endorsement. However, in the current season, Dogecoin has been struggling with occasional rallies, only to later lose all its accrued gains.

Yet, the performance has not deterred commentators from making wild price predictions for Dogecoin. While Martinez argues for $6.24 in his latest commentary, he has predicted much higher prices beyond the $10 range in previous assessments.

Meanwhile, commenting on Martinez’s latest projection, a community member pointed out that while the outlook appears promising, the biggest issue with Dogecoin lies in its lack of practical utility and unlimited supply, which leads to inflation. The commenter lamented that DOGE heavily relies on hype and faces technological limitations.