Dogecoin has often proven its ability to defy expectations and achieve notable price spikes from time to time. The most notable of these rises was the 2021 surge, which saw Dogecoin reach its current all-time highs. but, It might be the best yet to come, As technical analysis indicates Dogecoin is still on track to repeat and possibly surpass this step.
In particular, Dogecoin’s recent fractal analysis suggests that Dogecoin is on track to go anywhere. Between $4 and $23 In the foreseeable future.
Dogecoin price decline and historical fractal patterns
Dogecoin price movement slowed down considerably In the past four weeks. The last two weeks of these four weeks are for her It was highlighted by a noticeable decreaseWhich culminated in Dogecoin price breaking below the multi-month resistance level of $0.35 that it broke in early November.
according to Technical analysis by Cryptocurrency Analyst Ali Martinez, Dogecoin is currently playing a fractal movement on the weekly candlestick time frame chart. Fractals, in technical analysis, refer to recurring patterns that appear across different ranges and time frames. For Dogecoin, this fractal movement dates back to its early days as a meme coin in 2013 and provides a historical lens for forecasting its current path.
As shown in the price chart below, a fractal movement is highlighted by a noticeable correction After the break above A downward sloping trend line drawn from the highs of the previous session. In the case of this cycle, the correction saw Dogecoin fall to a low of 45.8% from the recent peak at $0.48. However, the corrections in the past two sessions, as shown in the chart below, ended up bouncing back to create strong multi-month rallies to all-time highs.
In the first hack cycle of 2017, Dogecoin followed a similar path. After the initial breakout and correction, the cryptocurrency embarked on a parabolic rally, eventually peaking at $0.01855 in early 2018.
This peak corresponds closely with the 1.618 Fibonacci extension level measured from the previous bear market bottom. The second breakout cycle occurred in 2021 and led to an even greater rise in prices. Dogecoin reached an all-time high of $0.7316, surpassing the 2.72 Fibonacci extension level from the previous bear market low.
The fractals indicate another parabolic rally for Dogecoin
Based on previous price action results, the current fractal pattern indicates that Dogecoin may be poised for a similar rebound in the coming months. The extent of this rebound also depends on the extent of the current correction. If the fractal breakout repeats itself, Dogecoin price could continue with another parabolic rally to the 1.618 or 2.272 Fibonacci extension levels, or somewhere in between.
According to Martinez, this would put price targets anywhere between $4 at the 1.618 Fibonacci Extension and $23 at the 2.272 Fibonacci Extension.
As of now, Dogecoin is trading at $0.326. A rise to $4 would represent a 1,126% increase from the current price, while a rise to $23 would represent a 6,955% increase.
Featured image from CNET, chart from TradingView