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The entire cryptocurrency market has seen a significant decline over the past 24 hours, led by Bitcoin breaking below the $100,000 price level once again. Dogecoin has not been left out From this decline, which saw its price collapse by approximately 15% and eventually reach below $0.31. However, technical analysis indicates that this price drop is quite normal in Dogecoin’s current trajectory. This technical analysis offers a silver lining for Dogecoin enthusiasts, as it frames the pullback as a natural phenomenon within the broader ongoing bull cycle.
The weekly golden cross and its effects on the price of Dogecoin
Cryptocurrency analyst Kevin (Kev_Capital_TA) has moved to social media platform X To highlight the importance From Dogecoin’s weekly golden cross amid the ongoing market decline. According to Kevin, Dogecoin has seen a weekly gold cross Back in early Novemberin conjunction with US election period. Historically, these technical indicators indicate strong upward momentum in an uptrend. However, Kevin noted that the current pullback is in line with previous patterns as Dogecoin underwent significant corrections after golden crosses.
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He pointed this out In previous sessions, Dogecoin faced three separate 50% corrections on its way to finishing at the top of the cycle. This provides historical behavior Context of the recent collapse to $0.31which, according to Kevin, is a typical pullback in a bull market. He stressed that this type of correction is not only expected, but also necessary to maintain the bullish structure of the market.
Support levels and golden pocket area
Kevin’s technical analysis also looks at key support levels for Dogecoin which could determine the meme coin’s next move. To obtain these support levels, explain Macrostructure support area The Golden Pocket, a Fibonacci retracement area that is widely considered a strong support area. Based on his assessment, a 45% correction from Dogecoin’s recent high would be in line with these levels and could pave the way for a resumption of the uptrend.
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With that in mind, Dogecoin’s recent high price is around $0.48, the price point it achieved in early December. If Dogecoin can reach this golden pocket area without closing below the $0.26 level on a weekly basis, this should be enough to keep the bullish market structure intact. However, a break below the support level at $0.26 could spell trouble for Dogecoin, and cause a shift in its price trajectory in the broader trend.
At the time of writing, Dogecoin is trading at $0.3179, which represents a sharp decline of 12% over the past 24 hours and a more significant decline of 22% over the past seven days. This latest decline puts Dogecoin at its lowest level since early November, crossing the $0.35 threshold for the first time in over a month. However, the support level of $0.26 will remain the focus in determining whether… The uptrend for Dogecoin is still in effect.
Featured image created with Dall.E, chart from Tradingview.com
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