Dogecoin (DOGE) $1 Theory Reignited... "This Time It's Possible"

▲ Dogecoin (DOGE)

While there is an outlook that Dogecoin (DOGE) could rise to $1 in this bull market, an analysis followed suggesting that further increases beyond that would not be easy.

According to Benzinga on September 14 (local time), crypto analyst VirtualBacon left open the possibility of Dogecoin reaching $1. He cited the fact that this is slightly higher than its previous all-time high of $0.7316. He said, “It is possible to make a slightly higher all-time high.” However, he drew the line, stating, “I do not expect Dogecoin to significantly exceed $1.”

VirtualBacon also presented examples of Solana (SOL), XRP, and Ethereum (ETH) surpassing their previous all-time highs in this cycle. Benzinga calculated that Dogecoin would need to rise by approximately 1,090% to reach $1. Based on a circulating supply of 155.91 billion DOGE, the market capitalization would swell to approximately $155.9 billion. At its previous all-time high of $0.7316, the market capitalization was about $114 billion.

Increased supply was cited as a variable making it difficult for Dogecoin to settle at $1. Approximately 5 billion DOGE are newly issued each year. If the price were $1, the annual new supply alone would amount to approximately $5 billion. This means the market would have to absorb new supply in addition to selling pressure from existing holders. Bitwise plans to liquidate its Dogecoin ETF, BWOW, with the last trading day scheduled for October 14 and the cash distribution date for October 22.

Benzinga pointed out that four conditions must be met for the $1 target to materialize. Retail investors' spot trading must remain high for several months, and Dogecoin must show stronger momentum than Bitcoin (BTC). It must also maintain a structure where highs and lows continue to rise even with profit-taking, and the futures market speculation should not overheat, requiring a trend where the upward movement does not solely rely on leverage.

Technically, the Fibonacci 23.6% retracement line at $0.08 was presented as a major support level. After surpassing the 20-day exponential moving average of $0.0846 and breaking through the Fibonacci 38.2% retracement line at $0.0875, the next upward target becomes $0.0995. Benzinga acknowledged the possibility of reaching $1 but stated that the annual new supply of 5 billion DOGE and sustained spot demand are key variables that will determine long-term growth.

[Article Key Summary]

-VirtualBacon predicted that Dogecoin could reach $1, but further increases beyond that might be limited.

-If Dogecoin reaches $1, its market capitalization, based on circulating supply, would expand to approximately $155.9 billion.

-With approximately 5 billion DOGE newly issued each year, sustained spot demand and strong momentum against Bitcoin were presented as key conditions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*