Dogecoin price is currently trading within a bearish setup as it is continues to be directed following a dramatic price hike in the past two months. However, technical analysis suggests that the best meme coin is still there trading in a bullish setup in the big time.
In a technical analysis of Dogecoin’s price movement on a two-week candlestick chart, crypto analyst Javon Marks noted the approaching rally of 570% of DOGE, which is dependent on a break above the 1.0 Fibonacci expansion level.
Fibonacci Retracement Indicates Bullish Momentum
According to a Technical analysis of Dogecoin posted on social media X by Javon Marks, the price of Dogecoin is currently in the midst of its third major bullish cycle since its creation. Drawing parallels to Dogecoin’s historical price action during its two previous cycles, Marks suggests that the cryptocurrency is poised for a 570% increase from its current value.
Using the Fibonacci extension indicatorhe identified the 1.618 level as the first important bullish target for this cycle. This is because the last two cycles have been highlighted by a break above this Fib level when analyzed from the bottom of the previous bearish phase. As such, Dogecoin surpassed this level during its previous bull run.
According to the chart below, the bearish phases are highlighted by Dogecoin jumping at the relative support level. This price action is then followed by strong candles breaking above the previous cycle high.
The current (third) round of Dogecoin is currently playing out the same way. However, the meme coin seems to have faced a significant level of resistance on its way to retrace its previous cycle high of $0.7316. In particular, the price of Dogecoin experienced multiple rejections around $0.475 in early December, which culminated in a correction path since then.
At the time of writing, Dogecoin is trading at $0.316, which translates into a 50% price drop since December 8. In addition, data from Coinmarketcap shows that the leading meme coin is currently down 12.5% ​​in seven days past. However, crypto analyst Javon Marks suggests that history has not changed and it still points to a higher representation of price running towards the Fib extension levels to new all-time highs.
Analysis Makes Dogecoin Price Above $2.8
Dogecoin cycle price had a defining feature of its market behavior, which is a consecutive break above the 1.0 and 1.618 Fib expansion levels from the bearish market low. Currently, bearish momentum is dependent on a break above the first break above the 1.0 Fib extension level, located around $0.569. A break above this level would be open the Dogecoin bull forum challenging its current all-time high.
If the current cycle follows the trends of previous cycles, Dogecoin may surpass the Fibonacci retracement of 1.618, which would put it at least at $2.28. From here, the price of Dogecoin can continue at high speed and move to other price levels.
The featured image was created with Dall.E, a chart from Tradingview.com
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