Dogecoin’s value motion over the previous 24 hours has reflected the turbulence sweeping throughout the broader crypto market. The meme coin suffered a sharp decline on February 3, tumbling by double digits because the market underwent a widespread selloff, triggering mass liquidations throughout a number of cryptocurrencies. Dogecoin itself was not spared, with a substantial variety of merchants going through liquidations.
However, despite the short-term pain, crypto analyst ÐOGECAPITAL (@DimaPotts36) means that this downturn was a part of a a lot bigger setup, one that might catapult Dogecoin past its all-time excessive towards a brand new peak between $1.50 and $2.10.
Dogecoin Price Crash Aligns With Historical Trends
ÐOGECAPITAL’s latest analysis indicates that Dogecoin’s latest crash was anticipated as a part of the asset’s broader market cycle. The analyst shared insights pointing to historic value habits, drawing comparisons to Dogecoin’s earlier bullish cycles. On November 24, 2024, the analyst had outlined expectations for a major correction, referencing how the worth had beforehand retraced after reaching the 78.6% Fibonacci stage in a previous cycle.
At that point, Dogecoin had surged to this key Fibonacci stage earlier than experiencing a pointy -56% pullback, which later gave manner to an enormous rally. The analyst had emphasised that this sample might repeat, warning that traders ought to count on important corrections on the best way to new highs. With DOGE now present process an analogous retracement, ÐOGECAPITAL believes the situations are aligning for the following leg of the rally.
Price Rebound Could Push DOGE Price To $1.50 And Beyond
Following the anticipated pullback, which materialized as Dogecoin reached a backside of $0.2237 prior to now 24 hours, the analyst famous that Dogecoin is now gearing up for an eventual push to new highs. In his newest assertion, he reaffirmed his confidence that the asset will quickly resume its upward trajectory.
Once the pullback is over, Dogecoin might resume its upward trajectory and begin buying and selling above multi-year resistance ranges. In this case, the analyst famous that this might push the meme coin in direction of a peak of at the least $1.5 or to an higher finish of $2.10. These targets are grounded in Fibonacci extension ranges from the 2022 bear market low.
As of now, DOGE is in its third cycle and is perhaps on the best way to repeat the end result of the second cycle. Notably, the worth projections don’t cease right here, because the Fibonacci extension evaluation exhibits that Dogecoin might even attain as excessive as $3.94 this cycle.
Despite the bearish sentiment surrounding the latest value drop, ÐOGECAPITAL’s evaluation supplies a bullish outlook. At the time of writing, DOGE is buying and selling at $0.2636, up by about 6.3% prior to now 24 hours. However, it nonetheless stays down by about 21.3% in a seven-day timeframe, having misplaced the assist at $0.31. The first step to reaching $1.5 could be for the Dogecoin bulls to regain this assist at $0.31 after which break above resistance at $0.5 earlier than finally breaking above its present all-time excessive of $0.73.
Featured picture from Adobe Stock, chart from Tradingview.com
