Dogecoin price is currently trading within a bearish setup It is still subject to correction After the noticeable increase in prices over the past two months. However, technical analysis indicates that the leading meme coin is still standing Trading in a bullish setup On the larger time frame.
In a technical analysis of Dogecoin price action on a two-week candlestick chart, cryptocurrency analyst Javon Marks pointed to an imminent 570% rally for DOGE, which hinges on a breakout above the 1.0 Fibonacci extension level.
Fibonacci extension indicates upward momentum
According to A Technical analysis of Dogecoin Posted on social media platform X by Javon Marks, the price of Dogecoin is currently in the middle of its third major bull cycle since its inception. Drawing parallels from Dogecoin’s historical price action over the past two bull cycles, Marks notes that the cryptocurrency is well-positioned to surge 570% from its current price.
using Fibonacci extension indicatorThe level of 1.618 was identified as the first important upward target in this session. This is because the last two sessions were highlighted by a breakout above this Fibonacci level when projected from the bottom of the previous bearish phase. As such, Dogecoin has surpassed this level during each of its previous bull runs.
According to the chart below, bearish phases are highlighted by Dogecoin bouncing off a relatively stable support level. This price action is followed by strong bullish candles that break out of the previous session’s all-time high.
The current (third) Dogecoin cycle is currently running the same way. However, the meme coin appears to have encountered a notable resistance level on its way to reclaiming the previous session’s all-time high of $0.7316. In particular, Dogecoin price faced multiple rejections at $0.475 in early December, which has peaked in a correction path since then.
At the time of writing, Dogecoin is trading at $0.316, which means the price has dropped by 50% since December 8. Furthermore, data from Coinmarketcap shows that the leading meme coin is currently down 12.5% in the past seven days. However, cryptocurrency analyst Javon Marks suggests This date has not changed It still indicates a fairly high probability of the price rising to Fibonacci extension levels to new all-time highs.
The analysis puts Dogecoin price above $2.8
Periodic price movements of Dogecoin It had a distinctive feature of its market behavior, which was the successive breakout above the 1.0 and 1.618 Fibonacci extension levels from the bearish market bottom. Currently, the downside momentum hinges on a breakout above the initial breakout above the 1.0 Fibonacci extension level, which is located around $0.569. A break above this level would cause this to happen Opening the field for Dogecoin bulls To challenge its current all-time highs.
If the current session follows the trends of previous sessions, Dogecoin could break through the Fibonacci extension at 1.618, which would put it at least near $2.28. From here, Dogecoin price can continue its upward momentum and move to other price milestones.
Featured image created with Dall.E, chart from Tradingview.com