Dogecoin (DOGE) Skyrockets 10% to Five-Week High: Is This Just Beginning?

Dogecoin Surges Amidst Market Recovery

Dogecoin (DOGE) has witnessed a significant surge, rising nearly 11% to reach a high of $0.419 on Friday, marking its highest price in five weeks. This surge coincides with the overall cryptocurrency market's renewed optimism, as altcoins experience price gains alongside Bitcoin's rise above $100,000.

Following a market-wide downturn on Monday, which saw Bitcoin briefly dip below $90,000 and other digital assets facing losses, positive U.S. inflation data has sparked a recovery.

DOGE's Bullish Revival

At the time of writing, DOGE has jumped 10.03% in the past 24 hours, trading at $0.411. The coin's recovery began after finding support at lows of $0.30 on January 13th. Since then, DOGE has registered gains on four out of five trading days.

The recent surge has pushed DOGE above its closely monitored 50-day SMA of $0.3714, indicating a bullish trend. This has led to speculation among traders about the potential for an extended rally, provided the price remains above the SMA 50.

Historical Trends and Future Expectations

Historically, January has been a strong month for Dogecoin, with an average return of 85%. While outliers have seen performances of up to 700%, the median gain is 5%, second only to October's 8%. So far, Dogecoin has gained nearly 30% in January 2023.

According to Ali, a crypto analyst, Dogecoin (DOGE) began its second leg up on January 25, 2021, after a 56% price correction during the previous bull cycle. With DOGE having lost 46% of its value in recent weeks, Ali predicts that history could repeat itself, with a potential rally imminent.

Some analysts believe that DOGE could reach $1 by 2025, which would represent a 45% increase from its all-time high of $0.737 in May 2021. Alex Thorn, Head of Research at Galaxy Digital, predicts a $100 billion market cap for Dogecoin, stating, "Dogecoin will finally hit $1".