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One cryptocurrency analyst set a high target price for Dogecoin: $20. Based on the current price of the meme coin of $0.365, the forecast represents a significant increase of 5380%.
Although a captivating concept, this perspective was enough to spark both optimism and skepticism within the cryptocurrency community.
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History shows that Dogecoin flourished after political transformations in the United States
Dima James Potts links his forecasts to previous trends, noting this Dogecoin It usually rises after the inauguration of the US President. He points to previous cases in which the value of the currency has risen significantly due to increased political and social interest.
While historical performance is no guarantee of future success, this trend offers an interesting glimpse into DOGE’s potential.
Boots examined the weekly chart of Dogecoin, paying special attention to the notable fluctuations in the cryptocurrency’s prices following the last two presidential elections in the United States. Editorials.
After this happened, DOGE saw a staggering 30x price rise in 2017, and in 2021, it exceeded expectations with an 80x rise. These past highs have set the meme coin up for an impressive post-inauguration performance trend.
$dawg $10 + Dogecoin?! 🚀🚀
This weekly chart for #Dogecoin Shows its performance in the days and weeks following each presidential inauguration (indicated by vertical green lines).
• First cycle (2017): Dogecoin increased 30x after the opening date.
• Second session (2021):… pic.twitter.com/3unXeJ8YKu
– Shima James Potts (@DimaPotts36) January 19, 2025
Potts expects similar growth potential for the 2025 cycle. Just before the open, Dogecoin was selling at $0.38. He believes that a 55-fold rally, the average of previous sessions, could push the price above $20.
With the help of celebrity endorsements, especially billionaires like Elon MuskDogecoin’s exceptional ability to capture public attention may be crucial to this prediction. Historical momentum and strong community support could set the stage for another major rally.
$20 is bold but not impossible
Boots believes Dogecoin’s path to $20 depends on key developments within its ecosystem. A rise in utility, new use cases, or relationships with companies around the world may increase its value.
However, such value will require levels of adoption and sustained market demand never seen before.
Skeptics say DOGE may not be able to sustain such growth because it is not as utilitarian as others Cryptocurrencies. However, given the state of the meme coin, anything is possible in the volatile cryptocurrency market.
Broader market dynamics
The state of the global market will have a significant impact on the growth of Dogecoin. Potts claims that favorable macroeconomic conditions for DOGE could see it move closer to its $20 target.
On the other hand, regulatory pressures or general pessimism in the market could hinder the currency’s path.
At the time of writing, it is DOGE Trading at $0.3651Up 7.3% and 1.2% on the daily and weekly time frames.
Like most cryptocurrencies, Dogecoin’s value is affected by sentiment and demand. Therefore, maintaining any visible progress will depend on maintaining a strong community presence while attracting new investment.
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Proceed with caution
While some people find the idea of Dogecoin hitting $20 exciting, investors should be careful. The cryptocurrency market is completely unpredictable, and even the best predictions can be spoiled by unexpected events.
Featured image from DALL-E, chart from TradingView