Dogecoin Price Mirrors Bullish Pattern From Last Cycle, Is A Rally To $6 Possible?

The Dogecoin price could be gearing up for what looks like one other notable rally after its recent performance for the reason that starting of January. Dogecoin, which spent nearly all of the last two weeks of December on a decline, has regained momentum this month and is now about to interrupt above the $0.40 mark again.

In keeping with crypto analyst Trader Tardigrade, Dogecoin is currently mirroring its movements within the last bull cycle. Particularly, price movements suggest that the meme coin could also be preparing for a major rally to achieve recent all-time highs in the approaching months.

DOGE Playing Out Familiar Price Pattern

On the time of writing, Dogecoin is trading slightly below the $0.40 mark. This marks a formidable recovery after its recent decline to $0.267 in the course of December. Interestingly, this decline saw the Dogecoin price retrace by about 45% after it reached a multi-year peak above $0.48 in early December. This Dogecoin price peak was on the back of a formidable rally that has been in play since October, with the meme coin breaking past multiple price resistance levels.

As identified by Trader Tardigrade and as shown within the chart below, the recent 45% correction that Dogecoin went through is a transparent replica of an identical playout in 2021. Back then, Dogecoin was on an upward trajectory but encountered a brief slowdown marked by a forty five.86% retracement. Despite this temporary correction, Dogecoin managed to regain its bullish momentum and continued a unprecedented surge that shattered its all-time high on the time. This bull trajectory was so massive, and eventually ended up with Dogecoin breaking its previous all-time high and peaking at its current all-time high of $0.7316.

Source: X

Is A Dogecoin Price Rally To $6 Possible From Here?

The similarities between the present price structure and the 2021 cycle suggest that Dogecoin could eventually undergo one other similar rally and break its previous record. If an identical rally were to happen, the projection, in accordance with the 2021 rally, puts Dogecoin at a price goal of around $6 by the center of 2025.

On the time of writing, Dogecoin is trading at $0.386, which has been up by about 22% prior to now seven days. Punching within the numbers, if Dogecoin were to achieve the value goal of $6, it might translate to a rise of about 1,450% from the present price level.

Several aspects must align to ensure that Dogecoin to realize such an ambitious goal. Key amongst these are sustained buying pressure from retail and institutional investors, an increase in whale activity, projected crypto-friendly policies from the federal government, and renewed interest in meme coins across social media.