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The entire crypto market has experienced significant declines in the past 24 hours, led by Bitcoin’s break below the $100,000 price level again. Dogecoin was not left out in this decline, which saw its price drop by about 15% and eventually reach below $0.31. However, technical analysis suggests that this price drop is more natural for Dogecoin’s current trajectory. This technical analysis offers Dogecoin lovers a silver lining, as it includes a pullback as a natural phenomenon within an ongoing bull cycle.
The Weekly Golden Cross And Its Effects On Dogecoin Price
Crypto analyst Kevin (Kev_Capital_TA) joined the social media platform X to highlight importance of Dogecoin’s weekly gold cross amid the ongoing market downturn. According to Kevin, Dogecoin experienced a weekly golden cross back in early Novemberit is compatible US election time. Historically, such technical indicators show strong bullish momentum to the upside. However, Kevin noted that the current pullback is consistent with past patterns where Dogecoin made significant corrections following gold crosses.
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He pointed that out in previous cycles, Dogecoin faced three separate 50% corrections on its way to the top of the cycle. This historical behavior provides context of the recent crash to $0.31which, according to Kevin, is a typical bull market pullback. He emphasized that this type of recovery is not only expected but also important to maintain the structure of the market.
Support Levels And Golden Pocket Zone
Kevin’s technical analysis also looks at key supporting levels for Dogecoin that could determine the meme coin’s next move. To get these levels of support, he revealed this a support area with a large structure and the gold pocket, which is a Fibonacci retracement area that is widely considered a strong support area. Based on his assessment, a 45% correction from Dogecoin’s recent highs will be consistent with these levels and may set the stage for a resumption of the uptrend.
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With that in mind, Dogecoin’s recent price is around $0.48, which is the price point it reached in early December. If Dogecoin should enter this gold pocket area without closing below the $0.26 weekly level, this should be enough to keep the bullish market structure intact. However, breaking the support below $0.26 could cause trouble for Dogecoin, and cause its price to change in the broader trend.
At the time of writing, Dogecoin is trading at $0.3179, marking a 12% drop over the past 24 hours and an even more significant 22% drop over the past seven days. This latest decline puts Dogecoin at its lowest level since early November, breaking below the $0.35 threshold for the first time in over a month. However, the $0.26 support level will remain the deciding factor The Dogecoin bull run is still active.
The featured image was created with Dall.E, a chart from Tradingview.com
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