Dogecoin’s rollercoaster ride continues! After a surge of excitement earlier in 2024, the price of DOGE has taken a tumble, wiping out more than half its value in recent months. This dip has created a divide among investors. Some see it as an opportunity to double down on short positions, betting the price will fall further. Others, however, are looking at this as the perfect moment to “buy the dip,” anticipating a rebound. Adding fuel to the fire, one crypto expert is predicting a massive price surge for DOGE, suggesting it could leap from its current price of around $0.2290 to a whopping $5 when the next big crypto bull market takes off.

Analyst Predicts Dogecoin Price Could Surge to $5

Crypto Elites, a well-known analyst with a strong following of over 230,000 on X, recently shared their bullish outlook. In their post, they framed the recent price drop not as a cause for alarm, but rather as a stroke of luck. The analyst highlighted a cup and handle (C&H) pattern forming on Dogecoin’s weekly chart. This pattern, they believe, is a strong indicator that Dogecoin is gearing up for a significant rally, potentially all the way to $5.

For those unfamiliar, a Cup and Handle pattern is a technical chart formation that suggests a continuation of an upward trend. Think of it in two parts. First, the “cup” shape: this is characterized by a period where the price declines, finds support (creating a horizontal support line connecting two peaks), and then recovers, forming a rounded bottom. This cup formation can be a long process, sometimes taking months or even years to fully develop.

Next comes the “handle.” After forming the cup, the price might consolidate or even dip slightly. This short-term consolidation or pullback is the handle. Typically, after the handle is complete, the asset is expected to rally strongly, break through the resistance line of the cup, and then continue its upward climb.

According to Crypto Elites’ analysis, Dogecoin’s price has already completed the “cup” formation and has now retested the upper resistance level. As illustrated in their chart (shown below), their prediction is for DOGE to first climb to $0.75, then push further to $1.5, and ultimately reach the ambitious target of $5.

It’s important to remember that Cup and Handle patterns are not always quick to play out. One key thing to keep in mind when using this pattern is that achieving the price target can be a matter of patience, potentially taking anywhere from months to even years.

DOGE Price Catalysts

This optimistic Dogecoin price forecast isn’t just based on chart patterns; it’s also supported by some fundamental factors. Firstly, the recent downturn in Solana meme coins could actually benefit Dogecoin. Investors might be shifting their focus from these newer, riskier meme coins back to more established players like Dogecoin and Shiba Inu – a phenomenon known as rotation to “blue-chip” meme coins.

Secondly, there’s growing speculation around a potential spot Dogecoin ETF approval by the Securities and Exchange Commission. Market odds on Polymarket are suggesting an increased likelihood of this happening. Looking at the bigger picture, there’s even talk of DOGE potentially being added to Trump’s strategic crypto reserve, possibly pushed by none other than Elon Musk.

Dogecoin Price Technical Analysis as Wedge Forms

Adding to the bullish signals, technical analysis suggests a potential rebound for DOGE this month. A falling wedge pattern has emerged on the daily chart. This pattern is characterized by two downward-sloping trendlines that are getting closer together, forming a wedge shape. The upper trendline connects the price swing highs since November, while the lower trendline joins the swing lows from around November 12th.

As these trendlines converge, it typically signals a potential price breakout to the upside. If this pattern plays out, Dogecoin could rally towards the key resistance level of $0.4838, which represents the high from November—a jump of around 120% from current prices. While a surge to $5 is in the realm of possibility, it’s likely to be a longer-term goal.

However, it’s important to note the risk. If the price breaks down below the previous month’s low, this bullish outlook would no longer be valid.