A cryptocurrency analyst has set a high price target for Dogecoin: $20. Based on the current meme coin price of $0.365, the forecast indicates a significant upside of 5,380%.

While it was a captivating concept, this prospect was enough to generate both optimism and skepticism in the cryptocurrency community.

History shows that Dogecoin thrives after political changes in the US

Dima James Potts connects his forecast to past trends and notes it Dogecoin usually increases after the inauguration of the US president. It points to previous instances where the value of the coin increased significantly due to increased political and social interest.

While historical performance does not guarantee future success, this trend offers intriguing insight into DOGE’s potential.

Potts analyzed Dogecoin’s weekly chart, paying particular attention to the cryptocurrency’s noticeable price fluctuations following the last two US presidential elections. inaugurations.

Following this event, DOGE saw a spectacular 30x price boost in 2017, and in 2021, it exceeded forecasts with an 80x boost. These spikes in the past have seen the meme coin trend towards impressive post-launch performance.

$DOGE DOGECOIN $10+?! 🚀🚀

This weekly chart #DOGECOIN shows its results in the days and weeks following each presidential inauguration (indicated by vertical green lines).

• Cycle 1 (2017): Dogecoin has increased 30x since inauguration.

• 2nd cycle (2021):… pic.twitter.com/3unXeJ8YKu

— Ðima James Potts (@DimaPotts36) January 19, 2025

Potts predicts comparable growth potential in the 2025 cycle. Just before the inauguration, Dogecoin was trading at $0.38. He believes that a 55-fold boost, which is the average of previous cycles, could push the price above $20.

With the facilitate of celebrity endorsements, especially those from billionaires Elon MuskDogecoin’s unique ability to attract public attention could be crucial to this prediction. Historic momentum and sturdy public support could pave the way for another significant rally.

$20 is bold, but not impossible

Potts believes Dogecoin’s path to $20 depends on key events in its ecosystem. Increased levels of usability, recent operate cases, or relationships with companies around the world can boost its value.

However, such value would require a level of adoption and sustained market demand not previously seen.

Skeptics say DOGE may not be able to sustain such growth because it is not as utilitarian as other cryptocurrencies. Still, given the coin’s meme status, anything is possible in the volatile cryptocurrency market.

Broader market dynamics

The state of the global market will have a major impact on Dogecoin’s development. Potts says favorable macroeconomic conditions for DOGE could push it closer to its $20 target.

On the other hand, regulatory pressures or general market pessimism could hinder the coin’s trajectory.

At the time of writing, DOGE was traded at $0.3651by 7.3% and 1.2% on a daily and weekly basis, respectively.

Like most cryptocurrencies, Dogecoin’s value is influenced by sentiment and demand. Maintaining the obvious progress will therefore depend on maintaining a sturdy community presence while attracting recent investment.

Proceed with caution

While some people find the idea of ​​Dogecoin hitting $20 to be thrilling, investors should remain cautious. The cryptocurrency market is very unpredictable and even the best forecasts can be thwarted by unexpected events.

Featured image from DALL-E, chart from TradingView