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Dogecoin's $1 Target Requires Ethereum Breaking 2021 Highs, Analyst Says

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Alexey Bondarev4 hours ago
Dogecoin's $1 Target Requires Ethereum Breaking 2021 Highs, Analyst Says

Crypto analyst VisionPulsed outlined three specific market conditions that must align before Dogecoin can reach its long-anticipated $1 target, currently trading at $0.22. The analyst warned that without Ethereum breaking above its 2021 highs, supportive halving-cycle timing, and continued global liquidity expansion, the meme coin's parabolic rally remains unlikely.


What to Know:

  • Ethereum must break above its 2021 all-time high to confirm a broader bull market before Dogecoin can sustain a rally to $1
  • The 486-day post-halving cycle window, reaching August 18, 2025, represents a critical timing threshold based on historical patterns
  • Global M2 money supply expansion needs to remain supportive to maintain risk appetite for cryptocurrency investments

Market Prerequisites Block Dogecoin's Parabolic Move

VisionPulsed presented a data-driven analysis suggesting Dogecoin's path to $1 faces significant hurdles. The analyst emphasized that Ethereum must first break decisively above its previous peaks while halving-cycle timing and global liquidity conditions remain favorable.

Bitcoin dominance has recently bounced higher, sidelining prospects for a broad altcoin rally that would benefit Dogecoin. Ethereum has shown improvement by reaching new cycle highs above $4,000, but remains trapped beneath two critical resistance levels from 2021.

"Once ETH breaks this high, ETH has officially gone onto a bull market," VisionPulsed stated. The analyst identified these final technical hurdles as the May 2021 high and the all-time high from the same year.

Recent price action in Dogecoin has created additional concerns. VisionPulsed highlighted a "conspicuous topping-tail candle" that formed after traders piled into positions, describing it as "definitely not the candle you want to see."

The analyst compared this formation to a similar pattern that preceded a local reversal, cautioning against interpreting short squeezes as sustainable trend indicators.

Historical Cycles Point to August 2025 Window

Timing represents a crucial component of VisionPulsed's analysis framework. The 486-day mark from Bitcoin's most recent halving has historically marked significant inflection points in previous market cycles.

"We are fastly approaching what would be considered the final bull-run push in 2021… 486 days from the halving," the analyst explained. Both of the last two cycles experienced substantial corrections followed by final rallies around this timeframe.

With the April 19, 2024 halving as the reference point, August 18, 2025 emerges as the analogous threshold for the current cycle. VisionPulsed treats this date as contextual guidance rather than a guaranteed outcome.

"There are no guarantees," the analyst stressed, acknowledging the limitations of historical pattern recognition. The framework provides structure for expectations while recognizing that market dynamics can deviate from past behavior.

Liquidity Conditions Remain Supportive But Not Decisive

Global M2 money supply expansion continues to support risk assets, though VisionPulsed cautions against over-reliance on this indicator. The analyst noted that "everyone and their mother" monitors M2 data, which currently suggests potential for continued rallies.

However, historical precedent shows M2 can remain elevated even as cryptocurrency markets enter bear phases. Previous cycles demonstrated that the relationship between money supply growth and crypto performance is not perpetual. "We'll use it until it doesn't work," VisionPulsed said, adopting a pragmatic approach to liquidity analysis. The indicator provides supportive context but cannot guarantee extended bull market conditions independently.

The analyst's framework treats liquidity as one component of a three-part equation rather than a standalone catalyst for Dogecoin's advance toward $1.

Understanding Key Crypto Market Terms

Bitcoin halving refers to the programmed reduction in new Bitcoin supply that occurs approximately every four years, traditionally associated with significant price cycles. Market dominance measures one cryptocurrency's market capitalization as a percentage of the total crypto market, with Bitcoin dominance indicating whether institutional flows favor the leading digital asset over alternatives.

M2 money supply represents a broad measure of money in circulation, including cash, checking deposits, and easily convertible near money. Cryptocurrency analysts frequently correlate M2 expansion with risk asset performance, as increased liquidity often flows into speculative investments.

Altseason describes periods when alternative cryptocurrencies significantly outperform Bitcoin, typically occurring during later stages of bull markets when investor risk appetite reaches peak levels.

Trading Range Expected Despite Bullish Potential

VisionPulsed allows for significant volatility within Dogecoin's current consolidation pattern without expecting structural changes. The analyst suggested moves to 30 cents remain possible as tradeable ranges rather than the beginning of a terminal advance.

Converting this ranging behavior into sustained uptrend requires the multi-asset alignment described throughout the analysis. Single candlestick formations or isolated breakouts cannot substitute for broader market confirmation. Dogecoin currently trades in what VisionPulsed characterizes as "broad, choppy accumulation," a bottoming process that can include false breakouts in both directions. Even under constructive scenarios, failure of broader conditions could force additional downside before any genuine altseason emerges.

The analyst maintains that sustainable progress toward $1 depends on systematic fulfillment of the three primary conditions rather than momentum-driven price spikes.

Closing Thoughts

VisionPulsed's analysis establishes a clear framework for Dogecoin's potential advance to $1, requiring Ethereum's breakout above 2021 highs, supportive halving-cycle timing around August 2025, and continued global liquidity expansion. Without these conditions aligning, the meme coin likely remains trapped in its current trading range despite periodic volatility.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
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