Dogecoin (DOGE) is likely to join several assets in the cryptocurrency sector in a potential rally a few months after Bitcoin’s halving. If history is anything to go by, the price of the world’s largest meme coin could spike and bring heavy returns for several investors.
Current data from CoinMarketCap shows that DOGE has plunged on the 1-hour and 24-hour charts. The 7-day chart also shows a nearly 3% reduction. Nonetheless, the near future is still considerably bullish for potential Dogecoin price action, which aligns with previous price patterns.
Historical data shows that DOGE entered a significant rally a few months after Bitcoin’s third halving event in May 2020. By May 2021, DOGE had risen to an impressive all-time high (ATH) of $0.73. Unfortunately, Dogecoin was unable to sustain the price action in the long term and eventually plunged. At its current price of $0.1494, DOGE is nearly 80% down from its ATH. Nevertheless, if history repeats itself, the asset could set a new ATH by April next year if history repeats itself.
Although DOGE is a meme coin, the asset has found acceptance across major trading platforms and crypto exchanges and is currently the world’s eighth-largest cryptocurrency. This adds some trust and legitimacy to the coin’s standing, making it possible for the asset to follow a historical pattern. Unfortunately, meme coins are a lot more speculative than average and are difficult to predict.
In addition to historical data, several factors contribute to the bullish predictions for DOGE. Firstly, the asset’s trajectory supports the possibility of increased adoption. Also, the popularity and liquidity Dogecoin enjoys could encourage crypto project developers to create applications that support DOGE payments in addition to popular options like Bitcoin (BTC) or Ether (ETH). The meme coin could also be functional in the online gambling sector, usable as a deposit and withdrawal method for casino bets and earnings.
Tesla and SpaceX CEO Elon Musk is a long-time DOGE advocate and has publicly posted on X (formerly Twitter) in support of the dog-themed meme coin. Interestingly, the plan to turn X into an Everything App involves payment solutions, bolstered by the company successfully receiving money transmitter licenses in 25 states, including Florida, Rhode Island, Pennsylvania, Utah, and Maryland. In an X Space back in December, Musk told Ark Invest CEO Cathie Wood that X will launch in-app payment services sometime in the middle of the year. While he has not explicitly said that X will support crypto, or DOGE, many already believe the integration will happen at some point because of Musk’s affinity for the meme coin. Tesla already began accepting DOGE payments for merchandise in 2022.
Another factor to consider is recent whale accumulation of DOGE. Last week, on-chain data from whale transaction tracker Whale Alerts noted a transfer of 150 million DOGE, worth $22.5 million, from the Robinhood crypto exchange into a “DDuXGM” private wallet. A closer look at the wallet’s transactions revealed that the whale had acquired another 150 million and 30 million tokens in two transactions a few hours earlier. The 30-million-DOGE transaction is worth $4.5 million at current prices. Generally, all of the activity around DOGE, including Musk’s continuous support, contributes to speculations that the meme coin is set for a significant price rally, which could culminate in a new ATH.
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