Dogecoin is showing signs of a potential parabolic rally despite the current market downturn.
Analyst Ali sees similarities between Dogecoin now and its 2018-2021 surge.
Price targets predicted by Ali include $0.40, $0.70 (previous ATH), $1.20 (new ATH), and even a crazy $12.
A $12 price point would give Dogecoin a market cap exceeding Ethereum's current value.
Even without reaching $12, a rally to $1 is still possible based on Ali's analysis.
The crypto market is in the middle of some minor bearish headwinds, and most cryptocurrencies are printing reds.
However, one of these cryptocurrencies stands out as being overdue for a parabolic rally, despite being one of the most fundamentally strong among the top 100.
This cryptocurrency is Dogecoin, and according to new insights from a top analyst, we are starting to see one of the first few signs of an incoming parabolic rally.
Let’s delve into some of these warning signs as highlighted by Ali in numerous tweets.
Last week, Dogecoin made headlines after breaking past the crucial $0.2 resistance.
However, the current market downturn has done a number on the memecoin, and we are looking at an ongoing decline in the cryptocurrency.
However, this changes nothing!
According to Ali, there are several striking similarities between Dogecoin now, and Dogecoin between the 2018-2021 period.
A new outlook on Dogecoin
Remember Dogecoin then? Rallying by thousands of times its original value in mere days.
Because of these similarities, there is some strong ongoing speculation about Dogecoin being on the verge of a “massive parabolic bull run.”
Per Ali’s tweet, investors are starting to get carried away by the “shiny new memecoins”, but Dogecoin remains the most important in this niche.
The attached chart shows that if Ali is right, we might be seeing Dogecoin rally straight up and breaking the $0.40 mark, paving the way for the rest of the rally.
However, it isn’t even close to being over for Dogecoin at this point.
Ali’s chart says that Dogecoin may be aiming for the $0.70 previous all-time high, before breaking through and aiming for a new all-time high of $1.20.
What is even crazier is how the chart from Ali also shows that Dogecoin might be hitting around $12.
As completely crazy as that sounds.
$500 billion on Dogecoin
A commentator on the initial post pointed out that a rally to $12 would put Dogecoin at around a market cap of $500 billion, which beats Ethereum’s current market cap of around $400 billion.
However, considering how several cryptocurrencies are expected to rally by several times their original value, it is unlikely that Ethereum, Solana or even BNB will wait around for Dogecoin to catch up to them.
Through it all, we’re probably looking at a rally of around 20x on Dogecoin, if Ali’s outlook makes any sense.
Martinez’s predictions are also provable from his history of tweets.
Back in early March, he made a similar tweet, stating that Dogecoin might be set to hit the $1 milestone by mid-April, per historical data as a guide.
Dogecoin according to the charts, is in the middle of a correction from the $0.22 high.
Dogecoin’s decline from the $0.22 high
From what we can see in the chart above, the middle Bollinger band (the 20-day SMA) is set to act as valid support for the cryptocurrency, preventing further decline from the $0.17483 support.
This means that if we see an eventual break below $0.17483, Dogecoin might be at risk of further decline to around $0.1226.
However, at the end of the day, Ali’s outlook remains valid. Dogecoin may not be hitting $1 by mid-April, but the fundamentals seem strong, and the $1 target is set to come in sooner or later.
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