Dogecoin often shows its ability to defy expectations and go through significant price increases from time to time. The most notable of these rallies was the 2021 rally, which saw Dogecoin surge to its current highs. However, the best may be now to come as technical analysis suggests that Dogecoin is still on track to repeat this step and possibly even surpass it.
In particular, the latest Dogecoin fractal analysis suggests that Dogecoin is on its way to getting nowhere between $4 and $23 in the foreseeable future.
Dogecoin price drops along with Fractal historical patterns
Dogecoin price went down a lot four weeks ago. The last two weeks of the four weeks he has a significant decrease is highlightedwhich culminated in the price of Dogecoin breaking below the multimonth resistance level of $0.35 that was broken in early November.
In accordance with technical analysis is Crypto analyst Ali Martinez, Dogecoin is currently playing a fractal movement on the weekly candle time chart. Fractals, in technical analysis, refer to repeating patterns that appear across different scales and time frames. For Dogecoin, this fractal entity dates back to its early days as a meme coin in 2013 and provides a historical lens to predict its current trajectory.
As shown in the price chart below, the fractal movement is highlighted by a significant correction after the break above a downward sloping line drawn from the high of the previous cycle. In the case of this round, the correction saw Dogecoin down 45.8% from its recent peak of around $0.48. However, the corrections in the last two cycles, as shown in the chart below, have finally multiplied to create strong multi-month rallies to new all-time highs.
In the first breakout cycle of 2017, Dogecoin followed a similar path. After the initial breakout and correction, the cryptocurrency began a parabolic rally, eventually reaching $0.01855 in early 2018.
This peak is closely aligned with the 1.618 Fibonacci extension level measured from the bottom of the previous bear market. The second round of exits took place in 2021 and led to even more dramatic price increases. Dogecoin reached an all-time high of $0.7316, surpassing the 2.72 Fibonacci retracement level from the previous bear market low.
Fractal Points to Another Parabolic Rally for Dogecoin
Based on the results of the previous price action, the current fractal pattern suggests that Dogecoin may be preparing for a similar rally in the coming months. The length of this repetition depends on the scope of the current correction. If the fractal explosion were to repeat itself, the price of Dogecoin could continue in another parabolic rally at the expansion levels of 1.618 or 2.272 Fib, or somewhere in between.
According to Martinez, this would put prices anywhere between $4 at the 1.618 Fibonacci retracement and $23 at the 2.272 Fibonacci retracement.
As of now, Dogecoin is trading at $0.326. A rally to $4 would represent a 1,126% upside from its current price, while a rise to $23 would represent a 6,955% upside.
Featured image from CNET, chart from TradingView
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