Strong optimism in the market has led to an upward trend Dogecoin As the dog-themed meme coin attracts notable price gains compared to many major crypto assets with a daily gain of over 50%. While the coin has risen significantly over the past few days, one cryptocurrency analyst predicted that the renewed bullish strength could be at risk of being rejected.
Historical trends are repeating for Dogecoin
In an important matter to update For Dogecoin investors and traders, Master Kenobi, a market expert and trader, warned that the recent Dogecoin price rise may be dismissed in the short term. The analyst’s forecast is based on previous cycle trends, as DOGE faced strong resistance after a similar upward move.
Furthermore, his view suggests that without sustained upward support, there is a possibility that the memecoin will see the same price hurdles as the coin. March of the last sessionwhich may lead to a short correction or price consolidation.
Mr. Kenobi believes rejection in DOGE’s rise is likely as he expects a final major resistance at $0.33 Before retesting its all-time high and trend line at $0.40. It should be noted that this decline is likely to be followed by a consolidation phase lasting approximately one to two weeks, as we saw in the recent bull cycle. “This scenario would be exactly consistent with what we observed during the same period in the previous cycle,” he added.
According to the market expert, the 91-day rectangle currently depicts a price trend that is almost identical to the trend last session. For this reason, Kenobi believes that history may repeat itself, creating similar conditions for breakthrough as evidenced by the comparative pattern of initial rejection accompanied by the consolidation phase.
Although DOGE’s previous cycle performance points to a pullback, the expert also highlighted that the possibility of a continuation of the upward trend is fueled by this fractal similarity, especially if crucial support levels remain firm after the impending rejection phase.
So far, traders and investors are closely monitoring Dogecoin’s bullish momentum for a potential correction in order to adjust their positions in light of the continued rising demand for the second-largest coin. Same angle.
The next few weeks could be challenging for DOGE
Master Kenobi’s insightful analysis matches the predictions of cryptocurrency expert, Kevin, who also did so He pointed out Possible DOGE price correction in the coming weeks after examining Dogecoin’s weekly golden cross formation.
According to Kevin, the last time the meme coin formed a weekly golden cross, it saw a roughly 200% spike in the same week. However, in the next three weeks that followed, Doug Consolidated and saw a 50% correction.
4 years later, the meme coin displays the same cross and pump trend again. Given the development, Kevin believes that in this range it makes sense for DOGE to see a decent volume correction or simply consolidate for a short period.
Featured image from Adobe Stock, chart from Tradingview.com