Key Insights:
Dogecoin has repeated a super chart pattern from 2017 and 2021.
Analyst Ali Martinez drew parallels from all three charts and predicted that a super rally was in the making.
DOGE has gained 440% in 2024 after the historic win by Donald Trump.
The upcoming rally could put DOGE between$15 to $36.
However, given the current fall in crypto markets, DOGE's super rally seems difficult now.
Dogecoin has repeated yet another historic pattern from 2017 and 2021, both years when it had a super rally of 5,000% and 12,000% after some drawdowns.
In 2017, the price of DOGE saw an initial rally of 212% and then faced a drawdown of 40%. After this drawdown, DOGE rallied 5000%, reaching $0.018.
The same price action was repeated in 2021 when Dogecoin made an initial rally of 476% and then faced a drawdown of 56%. The post-correction rally took DOGE up by 12000% post corrections. DOGE made an ultimate high of $0.73, which is still its ATH today.
Repeating historical patterns, DOGE saw a similar 440% initial rally in 2024, followed by a 46% drawdown, this time from $0.43 to $0.31. If DOGE repeats any of the two patterns, either from 2017 or 2021, it can easily cross $15 (5,000% up from current levels) and reach up to $36(12,000% up) if the rally is stronger.
Ali's technical charts also show that the breakout for the parabolic rally in DOGE could occur anytime soon. The analyst has repeatedly predicted a parabolic rally in DOGE, most of which have come true so far.
Despite being a highly bullish year for crypto markets, the end of 2024 has brought a piece of disheartening news from the United States Federal Reserve. The Fed has indicated that in 2025, there is a possibility of at most 2 rate cuts, that too of 0.25% each. This is much lower than the previous estimates of 4 rates cuts as large as 0.5% each or at least 1% in total.
As a result, the crypto markets saw an intense selloff. This selloff caused the total market cap to fall 17.5% from $3.79 trillion to $3.13 trillion. At press time, crypto markets have now stabilized at $3.3 trillion.
In this fall, a major loss fell upon memecoin markets. Despite being the most successful crypto sector in 2024, memecoins have lately been seeing huge corrections. Dogecoin fell around 46% while Shiba Inu corrected 40% from their recent highs.
It is difficult to imagine a parabolic rally in such a scenario. Yet, one factor may push DOGE ahead.
Dogecoin's namesake, the Department of Government Efficiency, could easily help DOGE and the overall crypto markets as it takes shape on 20 Jan 2025 after Donald Trump's swearing-in.
The department led by Vivek Ramaswamy and Elon Musk would keep US Government costs under check, limiting the new currency in circulation and thereby preventing inflation.
As Donald Trump is scheduled to take his oath as president, the DOGE will also come into play. If it performs well, it will control inflation in the US, allowing the US Fed to make room for a third rate cut and propping up the markets.
Another way this could help crypto markets is by making crypto regulators like the CFTC and the SEC (as per FIT-21) more transparent and efficient, which could then translate into clear policy and fair execution of cases.
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