Dogecoin could begin a parabolic rally as soon as April if history is anything to go by, according to one analyst.
The largest meme-based cryptocurrency by market capitalization may be lining up for a parabolic run, prominent crypto analyst Ali Martinez recently shared. The predicted run-up will see Dogecoin surpass its previous all-time high and soar as high as $3.5.
The analyst bases his bullish prediction on a review of Dogecoin’s price action in previous bull markets. Specifically, an accompanying chart shows a weekly DOGE chart, portraying price action in the buildup to a bull market.
According to the data, Dogecoin typically records a 97-week period after its bottom, where the cryptocurrency either consolidates or slowly grinds to new highs. During the 2017 market cycle, the consolidation was followed by a parabolic run that saw DOGE gain over 8,700% when it hit a high of $0.018.
A similar situation unfolded in 2021, albeit with an even more rewarding outcome for Dogecoin investors. The cryptocurrency gained over 23,000 percent, hitting a new high of around $0.735. Worth mentioning is that Dogecoin’s most recent bull market was further aided by the involvement of billionaire investor Elon Musk and generally novel market conditions created by the COVID-19 pandemic.
Nonetheless, Ali Martinez predicts that Dogecoin will have another run in the coming months if history repeats itself. Based on the analysis, the meme-based cryptocurrency is on the verge of completing its historical 97-week period. Once completed, the analyst anticipates a fresh Dogecoin parabolic rally that could take it well beyond the $3.5 mark.
The price action of #Dogecoin appears to mirror patterns observed in its past bull markets. If history repeats itself, we could see $DOGE enter a parabolic breakout around April! pic.twitter.com/fL1J3CP3mR
— Ali (@ali_charts) February 26, 2024
Dogecoin Struggles to Break Above $0.1
While many analysts continue to tip Dogecoin for a rally, the cryptocurrency has struggled to find a foothold above $0.1. Since hitting that price level in the second week of December, DOGE has dropped as low as $0.073 in recent weeks.
Any surge toward new highs will have to begin with a solid break above $0.1 and a stint above that price level. However, the upcoming Bitcoin halving and the historical bullish trend that typically follows puts Dogecoin on track to reach the predicted price levels.