Dogecoin has fallen violently over the past 24 hours, losing much of its value in a brutal correction across the entire crypto market. What looked like such as a hold above $0.25 turned into a rapid collapse that took the Dogecoin price as low as $0.148 within 24 hours.
However, technical analysis from crypto analyst Kaleo shows that Dogecoin is poised to reach new all-time highs. In a post on
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Dogecoin chart tells the story
In his post up On the social media platform The chart accompanying Kaleo’s post shows the historical pattern that Dogecoin has followed after previous Bitcoin halvings.
Each halving was always followed by years of massive upward moves in Dogecoin’s price, with the meme coin breaking out of long-term declining resistance lines to post exponential gains. Examples in this graph are the explosive price increases in 2017 and 2021.
Kaleo suggested that the current market phase reflects the same structure as just before the 2021 bull run, when Dogecoin broke above a key lower-high resistance from its previous all-time high. This moment is illustrated on the map with the label ‘We are here’.
Dogecoin price chart. Source: @CryptoKaleo on X
The $6.90 Magnet: Kaleo’s Logic Behind the Prediction
Kaleo acknowledged that the projection of a Dogecoin price target of $6.9 could do this sounds a bit too bullishbut its logic is based on the logic of market capitalization. In his post he explained that his projection for Bitcoin this cycle must exceed $500,000. If Bitcoin crosses $500,000 as expected, this would translate into a market cap of $10 trillion.
This massive amount of inflows would flow into the rest of the crypto market, and Dogecoin could theoretically reach 10% of Bitcoin’s valuation, much like it did during the mania of 2021. This ratio implies a market cap of $1 trillion for Dogecoin, which equates to a price of $6.94 per token based on current circulating supply.
The recent Dogecoin price crash has done just that complicated this bullish story. Instead of confirming an impending breakout, the meme coin has fallen below the $0.25 support level. At the time of writing, Dogecoin is trading at $0.1971, down 21.4% in the last 24 hours and has hit an intraday low of $0.1489.
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The collapse resembles the kind of market-wide liquidity surges that often occur before major reversals. But there is also a risk of extending Dogecoin’s bearish structure and delaying a breakout if the price does not recover quickly. At this point, a recovery above $0.25 is important for bulls to rebuild bullish momentum.
Featured image from Unsplash, chart from TradingView