Dogecoin (DOGE) Price Prediction: Analyst Says $20 Target Possible, Citing Historic Pre-Inauguration Patterns

Dogecoin (DOGE), the beloved meme cryptocurrency, is showing signs of a potential parabolic surge, with market indicators flashing bullish signals.

Dogecoin (CRYPTO: DOGE) price soared nearly 14% over the last seven days as the broader crypto market enjoyed a upswing. Now, one analysis is suggesting that the meme cryptocurrency could be set for another parabolic surge, with a bold prediction suggesting DOGE may climb to $20 per coin.

Dogecoin's Past Price Cycles,丕夫之勇, Bold Prediction

Crypto analyst Ðima James Potts highlighted an interesting historical trend related to Dogecoin's price movements around U.S. presidential inauguration cycles. According to Potts, DOGE has undergone massive price expansions in the months following past inaugurations.

“I believe Dogecoin will out-perform its past cycles due to technological advancements, greater adoption and institutional interest.”

DOGE priceチャート from TradingView.com

Dogecoin price soared over 1,000% in the months following President Biden's inauguration in January 2021, eventually peaking at an all-time high of $0.73 in May 2021. Before that, Dogecoin also experienced a strong surge following President Trump's inauguration in January 2017. From lows of around $0.0002 in December 2016, DOGE price climbed to highs of $0.018 by March 2017.

Potts' analysis suggests that this trend may continue in the coming months following President Biden's second inauguration on Jan. 20, 2023. The analyst is predicting that Dogecoin price could 1,000X from current levels, reaching $20 per coin.

At the time of writing, Dogecoin price was trading at $0.092, which means that Potts' prediction would require DOGE price to surge over 21,000%. Past performance is not indicative of future results and such predictions should be taken with a grain of salt.

However, the analysis does highlight the potential for extreme volatility in meme cryptocurrency price movements.

Dogecoin Price Drivers, Next Rally

Potts believes that this upcoming cycle could be even stronger than past surges due to several factors. One key driver is the increasing adoption of Dogecoin, with more businesses now accepting the meme coin for payments. Tesla (NASDAQ:TSLA), AMC (NYSE:AMC) and other companies now accept Dogecoin, adding real-world utility to the token.

Another factor is the upgrades being made to the Dogecoin network, including lower transaction fees and potential Layer 2 scaling solutions. These upgrades are making the Dogecoin blockchain more efficient and scalable.

Finally, the broader crypto market cycle could also play a role in Dogecoin's next rally. Typically, altcoins like DOGE have surged in the months following Bitcoin's (CRYPTO: BTC) halving event. With Bitcoin set for another supply shock in 2024, liquidity may flow into altcoins, potentially pushing DOGE to new highs.