Dogecoin’s Potential Surge 7 Months post Bitcoin Halving

In the past month, the price of Dogecoin (DOGE) has dropped, but based on historical data, there is a possibility that it could rally to new all-time highs approximately seven months after the Bitcoin halving. Currently, Dogecoin’s price is down by almost 8% on the daily chart and over 18% in the past month. It is following a similar price action as the previous cycle, indicating the potential for a rally towards new all-time highs. During the last crypto bull market, Dogecoin started its rally in May 2020, which was seven months after the 2020 Bitcoin halving. Its price reached an all-time high of $0.73 on May 8, 2021, exactly a year after the halving event. Presently, Dogecoin is 73% down from its previous peak, but if history were to repeat itself, it could reach a new all-time high around April 2025. Technical analysis is not easy to apply to memecoins like Dogecoin, as their value is mainly speculative. According to Robby Greenfield, the founder of Umoja Labs, memecoins are driven by greed and have little understanding of the high risks involved. He expects some memecoins to maintain a high valuation, especially as exchanges such as Coinbase introduce futures markets for memecoins like DOGE and PEPE. Due to the large and devoted communities behind these assets, they are likely to remain as higher-cap cryptocurrencies compared to most legitimate project-backed tokens. Several cryptocurrencies with high fully diluted valuations and substantial venture capitalist allocations have emerged in 2024, leading some analysts to believe that this could be detrimental to cryptocurrencies in the long term. As a result, retail investors may view memecoins without VC allocations as a fairer opportunity to participate in the crypto market. Gianluca Sacco, the COO of VALR, suggests that these tokens are not only seen as fair, but they also provide a fun community experience. Some memecoins like Pepe, Shiba Inu, Dogwifhat, and Floki have seen double-digit gains in the past week. This may indicate only a temporary surge of interest in certain memecoins rather than the start of a memecoin “altseason,” according to Diane Dai, the CMO of Dodo. Despite the price increases, the trading volume remains low, suggesting a lack of market liquidity and not necessarily a considerable influx of investors into the memecoin market after the halving event. In the past 24 hours, the daily trading volume of memecoins has declined by over 17% to $6.58 billion, and the market capitalization of memecoins has dropped by 5.8% to $52.8 billion, based on CoinMarketCap data.