Crypto analyst Trader Tardigrade has pointed out a similarity between the current Dogecoin price action and that seen in 2020. The analyst has shed light on what happened the last time this pattern formed on the Dogecoin chart and what can be expected moving forward.
In a recent post, Trader Tardigrade revealed that the Dogecoin price bi-monthly RSI (Relative Strength Index) has climbed to levels last witnessed in 2020. This surge in RSI is occurring just before a massive bull run, leading the analyst to predict that the next three bi-monthly candles will have a significant impact on Dogecoin’s price.
Accompanying charts displayed by the analyst indicate that substantial gains followed when the Dogecoin price RSI reached similar levels in 2020, eventually propelling Dogecoin to its all-time high (ATH) of $0.73. Interestingly, Trader Tardigrade’s chart suggests that this time around, the Dogecoin price could surge as high as $44.
For such a parabolic move to materialize, the Dogecoin price would need to replicate its staggering gain of over 26,000% during the 2021 bull run. Additionally, other crypto analysts, including Ali Martinez and Olivier, have also put forth ultra-bullish predictions for Dogecoin’s price, with targets ranging from $23 to $32 in the current market cycle.
Master Kenobi recently compared Dogecoin’s growth potential to Bitcoin, noting that while Bitcoin has already achieved a 5x increase from the market bottom, Dogecoin has only managed a 4x rise thus far. The analyst highlighted the significant difference in market cap between Bitcoin ($1.5 trillion) and Dogecoin ($29 billion), suggesting that Dogecoin has room to grow.
Master Kenobi projected that Dogecoin’s market cap could increase by 10x from its current level, reaching $290 billion and pushing the price to $2. In contrast, the analyst predicted that Bitcoin’s price would only 2x from its current point, rising to $150,000 with a market cap of $3 trillion.
As of the latest data from CoinMarketCap, the Dogecoin price is trading around $0.2, marking a 3% increase in the last 24 hours. The potential for further growth in Dogecoin’s price is evident, especially considering the bullish predictions from various analysts in the crypto space.
In conclusion, the current price action and RSI levels of Dogecoin indicate a potential for a substantial price surge akin to the one witnessed in 2020. With analysts forecasting significant price targets for Dogecoin, the cryptocurrency’s growth potential remains promising in comparison to other digital assets like Bitcoin. Investors and traders will be closely monitoring Dogecoin’s performance in the coming months to see if these bullish predictions come to fruition.
