Dogecoin Price Enters Consolidation Zone After Market Bounce With Eyes At $3

Source: Bitcoinist

A crypto analyst has confirmed that the Dogecoin price has entered a consolidation zone after experiencing a recent market bounce above the $0.3 level. The analyst predicts that Dogecoin is now eyeing a new price target of $3.4, aiming to reach a new all-time high in 2025.

Dogecoin Price Stabilizes In Consolidation Zone

According to X (formerly Twitter) crypto analyst Master Kenobi, Dogecoin has officially entered a horizontal consolidation zone. Historically, Dogecoin has followed a somewhat predictable pattern of growth stagnation, price corrections, consolidation phases, and sharp surges. The analyst has revealed that these consolidation periods often lasted for a few weeks on average, acting as a launching pad for Dogecoin’s next major price rally.

In this latest cycle, Master Kenobi disclosed that Dogecoin has stabilized within a consolidation zone of balance after two weeks of correction, indicating that it could be gearing up for its next price impulse. Based on the analyst’s report, the Dogecoin price is consolidating around the $0.31 level.

The analyst noted that external factors beyond the crypto market could play a significant role, possibly becoming a catalyst or narrative for Dogecoin’s next breakout. As a meme coin, Dogecoin’s price momentum is often influenced by changes in market trends, broader sentiment, increases in community engagement, and social media.

Master Kenobi also presented a chart pinpointing Bitcoin halving events, highlighting that they have historically catalyzed a surge in the broader crypto market. Based on this observation, the Bitcoin halving, which commenced in April 2024, could provide a stronger narrative and motivation for Dogecoin to reach higher price targets after its consolidation phase.

Source: X

While Master Kenobi has highlighted the significance of Dogecoin’s historical patterns on its current price action, he also predicted the meme coin’s future movements based on his chart analysis. The crypto analyst divided the Dogecoin chart into several colored trendlines, forming an ascending price channel.

The blue line at the base of the trend channel indicates Dogecoin’s current price level above $0.3. The green line, acting as a strong resistance area, shows Dogecoin’s 2021 all-time high at around $0.74 and its coveted milestone above $1. Additionally, the yellow and red trendlines serve as a much higher resistance level and price target for Dogecoin.

Bullish Breakout To $3.4

Master Kenobi’s Dogecoin chart has identified three critical price targets for the meme coin in 2025. The ATH at $0.74 serves as a crucial resistance area, which, if Dogecoin can break past, could signify a renewed bullish trend to its next ATH.

If Dogecoin clears $0.74, its next bullish target is set at $1.2, aligning with the yellow trendline in the chart. At this price mark, the analyst revealed that Dogecoin’s market cap would rival that of XRP, cementing the meme coin’s status among the top cryptocurrencies.

Master Kenobi also forecasted that Dogecoin could hit the orange trendline by the end of January, representing an ambitious price target of $3.4. The analyst disclosed that if Dogecoin rises to this ATH, its market capitalization will exceed that of Ethereum, which stands at $411.2 billion. He further acknowledged that reaching $3.4 was unlikely for Dogecoin at this stage of the bull market; however, it could be achievable at a much later date in 2025.