Dogecoin (DOGE) price action has slowed over the past four weeks after it breached its multimonth resistance level of $0.35 in early November.
Dogecoin 1-day chart. Source: Cointelegraph/TradingView
While the daily chart remains bullish, the crypto asset lost support from the 50-day EMA level on Dec. 19 and has not yet recovered a position above the indicator.
Despite these short-term concerns, one analyst highlighted that Dogecoin’s long-term target remained significantly high in 2025 if its previous bull run performance is considered.
Dogecoin target lies between $2.35 to $2.60
CEO, an anonymous crypto investor, told his 536,000 followers on X that Dogecoin is on track for a massive rally in 2025. With the help of a weekly chart, the investor illustrated a range high and range low sweep of previous weekly resistance and support that took place in the previous bull run.
The same pattern has been repeated over the course of 2024, and Dogecoin is in the final stages before a breakout rally.
Similarly, Chandler Bing, a technical analyst, said that the memecoin’s long-term price range is between $2.35 and $2.60, which is another 683% gain from its current price. While the target seemed far-fetched at the moment, the analyst called it a “conservative target.”
Dogecoin breakout analysis by Chandler Bing. Source: X.com
The analyst emphasized that the target has been set based on Dogecoin’s performance relative to Bitcoin and Ethereum in previous bull runs.
Javon Marks, a crypto trader, also set a similar price target at around $2.30, which is based on its Fibonacci extension levels. The analyst said,
“The history hasn’t changed and still points to a fairly high likeliness of a price run to AND ABOVE the 1.618 Fib Extension level as it did every cycle prior to this and this time around, that’d result in a more than 570% increase from here to $2.28+!”
Related: BTC could rebound in ‘coming days’ as metric signals growing buy pressure
Is a Dogecoin bottom in?
On Dec. 20, Dogecoin witnessed a flash spike down to $0.262, but the crypto asset recovered above $0.30 within the same day. Since then, Dogecoin has maintained a daily close above $0.30, but the price remains under its 50-day EMA level.
Dogecoin 1-day chart. Source: Cointelegraph/TradingView
Based on a historical outlook, a bottom could be in for Dogecoin because it has already exhibited a liquidity sweep of key levels at $0.32 and $0.34. Earlier this month, Cointelegraph reported a fractal formation from January 2024, where a bearish engulfing confirmation dragged prices down by 25-30%.
In December 2024, a similar situation unfolded with DOGE, where the crypto asset is establishing a bottom after its recent 25% drop.
With the relative strength index (RSI) bottoming below 30, selling pressure is also nearing exhaustion, and a reclaimed position above $0.35 will trigger a higher high for DOGE in 2025.
Related: XRP price must reclaim $2.30 to absorb buy wall — Analyst
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
