Dogecoin Set to Rally to $18 Despite 46% Drop? Here’s How History Suggests So

A prominent market analyst sees Dogecoin surging to a two-digit price, highlighting patterns from the 2017 and 2021 market cycles.

Buoyed by overwhelmingly positive crypto market sentiment, leading meme coin Dogecoin (DOGE) has had a substantially positive year with triple digital percentage price gains.

While this rally has slowed in the past few days amid broader market volatility sparked by statements from the Federal Reserve Chair Jerome Powell, history suggests it may just be par for the course of a significantly parabolic run, which still has lots of room to the upside.

The Beginning of the Road to $18?

Prominent crypto analyst Ali Martinez has highlighted that Dogecoin may be on the cusp of a parabolic rally despite its recent run. The analyst shared this view in a Monday, December 23 X post, citing the doggy-themed meme coin’s price actions in 2017 and 2021.

As highlighted by the analyst, in both instances, the asset had launched more substantial gains after first posting earlier rallies and correcting by around 50%. In 2017, it was a 212% gain followed by a 40% correction and then a 5,000% rally to a peak of $0.01857. In 2021, it was a 476% gain, followed by a 56% correction and then a 12,000% surge to its current all-time high near the $0.74 price point.

The analyst has suggested that the asset could replicate these moves after its recent 46% price correction from highs around $0.48434 to lows around $0.26216, following over 400% year-to-date (YTD) gains.

The historical pattern is displayed on the meme coin’s price chart as an ascending channel on the weekly timeframe, with the analyst suggesting a target near the $18 price point. The target represents an over 5,600% upside from current prices around the $0.31355 price point.

Still, parabolic rallies like these rarely happen without big catalysts. In the case of DOGE, investors may want to keep an eye on the meme coin’s long-time supporter Elon Musk and his ties to the Donald Trump-created Department of Government Efficiency, playfully nicknamed D.O.G.E by the billionaire.

On a broader scale, the anticipated pro-crypto leanings of the Donald Trump administration and continued global quantitative easing may also provide tailwinds for Dogecoin’s price.

Meanwhile, Martinez is not the only analyst who has highlighted the possibility of an imminent parabolic Dogecoin rally in recent weeks.

Last week, Dima James Potts contended that DOGE could rally to the $10 price point in 2025, citing the meme coin’s four-year cycle pattern. Just days before Potts shared his analysis, “Trader Tardigrade” set an even more ambitious target of $30.