Dogecoin (DOGE) has been facing a significant price correction after its impressive late-2024 rally, but a prominent market analyst believes the meme coin could be gearing up for an explosive breakout. According to a recent TradingView analysis by “MyCryptoParadise,” DOGE’s current retracement is a setup for a potential long-term bullish uptrend, with an ambitious price target of $42.
Dogecoin’s Correction to Key Support
Following Bitcoin’s push past the $100,000 milestone, altcoins like Dogecoin have struggled to maintain bullish momentum. Despite a meteoric 160% surge in November 2024, DOGE has retraced over 31% from its December high of $0.4846. Even major events like Donald Trump’s inauguration and the launch of the Department of Government Efficiency (D.O.G.E.) have failed to spark a renewed rally.
However, historical price movements suggest that Dogecoin’s correction may be a necessary step for future gains. The analyst highlighted that DOGE has a pattern of retesting key support levels before resuming its uptrend. This was evident in June 2023, when the coin tested support at $0.0615 before surging to $0.1515 in October. A similar structure was observed in August 2023 after a correction to $0.0880.
Currently, DOGE is expected to retest the $0.1512 support level—the breakout point from November 2024—before launching into its next major rally.
A 12,611% Surge to $42?
The most striking aspect of “MyCryptoParadise’s” analysis is the price projection for Dogecoin post-retest. The analyst envisions an extraordinary 12,611% rally that could propel the meme coin to a staggering $42. While no specific timeline was provided, the forecast suggests that DOGE could see historic gains if the broader market conditions align.
Dogecoin’s potential surge aligns with other bullish predictions. Notably, analyst Ali Martinez has projected a $23 price target, citing DOGE’s tendency to follow cyclical fractal patterns. With growing institutional interest in meme coins and the evolving crypto landscape, such projections, while ambitious, are not entirely out of the realm of possibility.
What’s Next for Dogecoin?
Currently, Dogecoin is trading at $0.3321, marking a modest 2% increase in the past day. Enthusiasts are advised to keep a close eye on the asset’s movement near the $0.1512 support level. If DOGE successfully bounces from this zone, it could confirm the start of a new bullish phase.
For now, analysts recommend buying the dip and monitoring market sentiment for signs of a reversal. Whether Dogecoin reaches the jaw-dropping $42 target remains to be seen, but one thing is certain—DOGE continues to be one of the most exciting assets in the crypto market.