Dogecoin has plunged violently over the past 24 hours, shedding a large chunk of its value in a brutal correction across the entire crypto market. What looked like a hold above $0.25 turned into a fast breakdown that dragged the Dogecoin price to as low as $0.148 within 24 hours. However, technical analysis from crypto analyst Kaleo shows Dogecoin is ready to hit new all-time highs. In a post on X, he doubled down on a remarkably bullish prediction, stating that $6.90 is a “magnet” for Dogecoin. Related Reading: Bitcoin Who? XRP Leads Coinbase Search Charts, Beating The Giants Dogecoin Chart Tells The Story In his post on the social media platform X, Kaleo noted how members of the crypto community are increasingly waking up to see how primed Dogecoin is to reach higher levels. The chart accompanying Kaleo’s post shows the historical pattern that Dogecoin has followed after previous Bitcoin halvings. Each halving has always been followed by years of massive upside moves in Dogecoin’s price, with the meme coin breaking out of long-term descending resistance lines to record exponential gains. Examples shown in this chart are the 2017 and 2021 explosive price surges. Kaleo suggested that the current market phase mirrors the same structure seen just before the 2021 bull run, when Dogecoin broke above a key lower-high resistance from its previous all-time high. This moment is illustrated on the chart with the label “We are here.” Dogecoin Price Chart. Source: @CryptoKaleo on X The $6.90 Magnet: Kaleo’s Logic Behind The Forecast Kaleo acknowledged that the projection of a $6.9 Dogecoin price target might sound a little too bullish, but his logic is based on the logic of market cap math. In his post, he explained that his projection for Bitcoin this cycle is to surpass $500,000. If Bitcoin surpasses $500,000 as expected, it would translate to a $10 trillion market capitalization. This sheer amount of inflow would flow into the rest of the crypto market, and Dogecoin could theoretically reach 10% of Bitcoin’s valuation, just as it did during the 2021 mania. That ratio implies a $1 trillion market cap for Dogecoin, which is equivalent to a $6.94 price per token based on the current circulating supply. Dogecoin’s recent price crash has complicated this bullish narrative. Instead of confirming an imminent breakout, the meme coin has fallen below the $0.25 support level. At the time of writing, Dogecoin is trading at $0.1971, down by 21.4% in the past 24 hours and having reached an intraday low of $0.1489. Related Reading: Sinking In Minutes: Binance Alpha Token Plunges 99% In Shocking Price Meltdown The breakdown looks like the kind of market-wide liquidity flushes often seen before major reversals. Yet, it also risks extending Dogecoin’s bearish structure and delaying any breakout if the price fails to recover quickly. Right now, recovery above $0.25 is important for bulls to rebuild bullish momentum. Featured image from Unsplash, chart from TradingView
