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Henrik Zeberg, a leading macroeconomist known for his expertise in business cycles and chief macroeconomist at Swissblock, has issued a technical report analysis Dogecoin price according to popular demand. Within the DOGE/USD monthly chart, Zeberg highlights potential future prices based on Fibonacci extensions and a specific chart pattern known as a “round bottom.”
Will Dogecoin price reach $29?
Zeberg’s technical approach is based heavily on Dogecoin’s historical performance, suggesting that its price may follow an upward trajectory reflected in previous cycles. He notes in his analysis that “DOGE appears to be developing a rounded bottom structure in each cycle. We observe how each cycle produced higher and higher highs in the euphoric phase.
A rounded bottom is a proven chart pattern often seen in financial markets that signals a major reversal or shift from a downtrend to an uptrend. This pattern is recognized by its gradual, circular rise from a low point, resembling the shape of a bowl or saucer. This pattern indicates a slow and steady accumulation phase among buyers, followed by a gradual rise in price and demand.
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A round bottom formation begins when an asset reaches a new low and then begins to slowly recover, with buyers gradually entering the market, wary of the downtrend but beginning to gain confidence as prices stabilize. As the price of an asset rises, it reflects increased buying pressure and decreased selling pressure, indicating a shift in market sentiment from bearish to bullish.
To confirm a round bottom, the price must break through the resistance level that initially created the pattern, which is often marked by the highest point of the curve before the asset price begins to fall. For Dogecoin price, this is the price level around $0.49 which Zeberg identifies as the first target price.
A breakout should usually be accompanied by an increase in volume and can indicate a long-term uptrend. If DOGE can break this resistance in the coming days, the future could be significantly bullish.
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Zeberg used Fibonacci levels to provide specific future price targets for Dogecoin. Specially identified Fibonacci extension levels on the Dogecoin chart include the 1.27 Fibonacci ($0.4924) which Zeberg described as Target 1 with a potential gain of 75%.
The next price target for Dogecoin is 1.618 Fib at $0.08030 which is referred to as Target 2 with an expected increase of 180% by Zeberg. The 2.618 Fibonacci level at $3.2738 has been set as Target 3, an ambitious target that represents an 8x increase.
Furthermore, the 3.618 Fib at $13.3641 and the 4.618 Fib at $54.4064 have also been identified, although not explicitly linked to immediate targets, indicating very optimistic long-term prospects if the market enters another euphoric phase similar to previous sessions.
Discussing these targets, Zeberg warns: “Could we see a crazier development? Nothing is certain, but the setup looks like a repeat of what we saw in previous stages.” This statement points to Zeberg’s main target for this uptrend, which lies between Fibonacci levels 3,618 and 4,618 at $29, assuming that the entire market remains in the mania phase for a long time. In this scenario, Dogecoin would achieve a gain of 10,200%.
At press time, DOGE was trading at $0.41.
Featured image created with DALL.E, a chart from TradingView.com
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