Dogecoin Plunge: Analyst Predicts $6.90 Target Despite Crash

Dogecoin’s recent price action has been nothing short of dramatic, with the meme coin shedding a significant portion of its value in a brutal 24-hour correction. What initially appeared to be a stable position above the $0.25 support level quickly deteriorated into a rapid breakdown, dragging the Dogecoin price to an intraday low of $0.148. At the time of writing, Dogecoin is trading at $0.1971, representing a 21.4% decline over the past day.

This breakdown below the crucial $0.25 support level has complicated the bullish narrative that had been building around Dogecoin. The move represents the kind of market-wide liquidity flush often seen before major reversals, yet it also risks extending Dogecoin’s bearish structure if the price fails to recover quickly. For bulls to rebuild momentum, a recovery above the $0.25 level is now critically important to confirm any breakout potential.

Despite the recent crash, crypto analyst Kaleo has doubled down on a remarkably bullish prediction, stating that $6.90 acts as a ‘magnet’ for Dogecoin. In his analysis shared on social media platform X, Kaleo highlights how the crypto community is increasingly recognizing Dogecoin’s potential for higher levels. His technical analysis focuses on the historical pattern Dogecoin has followed after previous Bitcoin halvings.

The chart accompanying Kaleo’s post demonstrates that each Bitcoin halving has been followed by years of massive upside moves in Dogecoin’s price. Specifically, the meme coin broke out of long-term descending resistance lines to record exponential gains following the 2017 and 2021 halving events. Kaleo suggests 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 historical precedent forms the foundation of Kaleo’s optimistic outlook, with his chart explicitly marking the current moment with the label ‘We are here,’ indicating a potential setup similar to previous explosive price surges.

Kaleo acknowledges that his projection of a $6.90 Dogecoin price target might sound excessively bullish, but he grounds this prediction in concrete market cap mathematics. His analysis begins with a projection for Bitcoin to surpass $500,000 in the current cycle, which would translate to a $10 trillion market capitalization for the leading cryptocurrency.

The analyst then applies the same ratio dynamics observed during the 2021 crypto mania, when Dogecoin reached approximately 10% of Bitcoin’s valuation. If this pattern repeats and Dogecoin captures 10% of Bitcoin’s projected $10 trillion market cap, it would imply a $1 trillion market capitalization for the meme coin. Based on Dogecoin’s current circulating supply, this $1 trillion market cap equates to a price of $6.94 per token.

This mathematical framework provides the logical foundation for what might otherwise appear to be an outlandish prediction, connecting Dogecoin’s potential performance directly to Bitcoin’s expected cycle movements and historical valuation relationships between the two cryptocurrencies.

The current market environment presents a critical test for Dogecoin’s bullish thesis. The recent breakdown below $0.25 support has created a tension between the potential for this being a typical pre-reversal liquidity flush versus the risk of extending bearish momentum. The speed and severity of the correction have undoubtedly shaken investor confidence, yet Kaleo’s analysis suggests this could be part of the necessary market structure before a major upward move.

Historical patterns following Bitcoin halvings indicate that Dogecoin has previously experienced similar corrections before embarking on exponential rallies. The parallel drawn to the 2021 bull run setup, where Dogecoin broke above key resistance levels, provides a template for what bulls hope will unfold. However, the immediate priority remains reclaiming the $0.25 level to validate the breakout narrative and rebuild bullish momentum.

As the crypto market navigates this volatile period, the divergence between current price action and ambitious long-term predictions highlights the speculative nature of meme coins like Dogecoin. While technical analysis and historical patterns provide a framework for understanding potential outcomes, the recent crash serves as a stark reminder of the inherent risks in cryptocurrency investing, even amid optimistic projections.