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A crypto analyst has set a lofty price target for Dogecoin: $20. Based on the meme coin’s current price of $0.365, the forecast represents a substantial 5,380% increase. Although a captivating concept, this perspective was sufficient to elicit both optimism and skepticism within the cryptocurrency community. Related Reading: Brains Not Working? Ethereum Foundation Under Fire For Repeated ETH Sell-Offs History Shows Dogecoin Thrives After US Political Shifts Dima James Potts connects his forecast to past trends, noting that Dogecoin usually goes up after US presidential inaugurations. He points out past instances when the coin’s value went up a lot because of heightened political and social interest. While historical performance doesn’t guarantee future success, this trend offers an intriguing glimpse into DOGE’s potential. Potts examined Dogecoin’s weekly chart, paying particular attention to the cryptocurrency’s notable price fluctuations following the last two US presidential inaugurations. Following the occurrence, DOGE saw a spectacular 30x price surge in 2017, and in 2021, it exceeded forecasts with an 80x rally. These past spikes have set the meme coin up for a trend of impressive post-inauguration performance. $DOGE $10+ DOGECOIN?! 🚀🚀 This weekly chart of #DOGECOIN shows its performance in the days and weeks following each presidential inauguration (indicated by vertical green lines). • 1st cycle (2017): Dogecoin increased 30X after the inauguration date. • 2nd cycle (2021):… pic.twitter.com/3unXeJ8YKu — Ðima James Potts (@DimaPotts36) January 19, 2025 Potts predicts comparable growth potential for the 2025 cycle. Just before the inauguration, Dogecoin was selling at $0.38. He believes that a 55x surge, which is the average of the prior cycles, might push the price above $20. With the help of celebrity endorsements, especially billionaires like Elon Musk, Dogecoin’s exceptional ability to attract public attention may be crucial to this prediction. Historical momentum and strong community support could pave the way for yet another significant rally. $20 Is Bold, But Not Impossible Potts believes Dogecoin’s path to $20 depends on key developments within its ecosystem. A heightened level of utility, new use cases, or relationships with companies around the world might all increase its value. However, such a value would required levels of adoption and persistent market demand previously unseen. Skeptics say that DOGE may be unable to sustain such growth since it is not as utilitarian as other cryptocurrencies. Still, given its meme coin status, anything is possible in the volatile crypto market. Broader Market Dynamics The state of the world market will have a big impact on Dogecoin’s growth. Potts claims that macroeconomic conditions that are favorable to DOGE may cause it to approach his $20 target. On the other hand, regulatory pressures or the general pessimism in the market could get in the way of the coin’s trajectory. At the time of writing, DOGE was trading at $0.3651, up 7.3% and 1.2% in the daily and weekly timeframes. Like most cryptocurrencies, the value of Dogecoin is influenced by sentiment and demand. Maintaining any obvious progress will thus depend on keeping a strong community presence while drawing fresh investment. Related Reading: WLFI Pushes Chainlink 30% Higher, Cardano Partnership Hints Add Fuel Proceed With Caution While some people find the idea of Dogecoin hitting $20 exciting, investors should be careful. The crypto market is very unpredictable, and even the best forecasts can be thrown off by unexpected events. Featured image from DALL-E, chart from TradingView