Crypto analyst Javon Marks has made an interesting prediction regarding Dogecoin, suggesting that the meme coin could skyrocket to $20 in this cycle. According to his technical analysis, DOGE has shown an impressive record of exponential growth in successive bull runs, and if this pattern continues, it could achieve a 306x increase or more this cycle.
However, despite the historical trends, reaching such a price point comes with significant market cap implications that raise questions about the feasibility of this prediction.
Bullish Case For Dogecoin To $20
Dogecoin’s price action in the past 24 hours has been highlighted by a decline, which has been extending over the past seven days. Particularly, Dogecoin has retraced by about 6.5% and 24.8% in the past 24 hours and seven days, respectively.
On the other hand, crypto analyst Javon Marks predicted that Dogecoin could, notwithstanding, still see its price increase by 306X this cycle. Javon Marks’ prediction is based on Dogecoin’s historical performance in previous cycles. In 2017, the altcoin experienced a 90x surge, while in 2021, the rally exceeded 306x. In 2017, DOGE experienced a 90x surge, while in 2021, the rally exceeded 306x and peaked at its current all-time high of $0.7316.
Using this pattern as a basis, Marks suggests that another similar or greater increase could occur, pushing DOGE to new all-time highs of over $20. If Dogecoin were to reach this price point, it would mark an increase of about 85x from its current price of $0.24, which is in line with the 2017 returns. A 306x run, on the other hand, would put the Dogecoin price at $87.
Market Cap Constraints: Is A $20 DOGE Realistic?
For Dogecoin to reach $20, its market capitalization would need to increase significantly more than it did in the previous cycles. At the time of writing, Dogecoin’s market cap is sitting at $36 billion. An 85x surge would bring its total market to around $3 trillion, given the current total number of circulating tokens. If the asset were to follow the full 306x trajectory Marks suggests, its market cap would balloon to an astronomical $11 trillion.
One of the only feasible scenarios where Dogecoin could reach $20 is if Bitcoin itself undergoes an extreme bull run and reaches a valuation between $1 million and $2 million per BTC. In such a case, the overall crypto market could expand, allowing meme coins like DOGE to go on parabolic price gains.
However, for Bitcoin to reach these levels, something dramatic would need to happen, like a massive capital injection into the crypto market. One of the speculated drivers is the idea that the US government could allocate trillions of dollars into a Bitcoin reserve. While such a move would undoubtedly trigger a historic rally across the broader crypto industry, this remains purely speculative at this point.
Featured image from Unsplash, chart from Tradingview.com
