Analyst Says Dogecoin Price Will Rise By 34%, But Will The Price Crash First?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous trends and patterns that have shaped the landscape of trading. The current bullish momentum surrounding Dogecoin is reminiscent of the late 90’s dot-com boom – exciting, unpredictable, and potentially lucrative.

As an analyst, I’m observing that while Dogecoin is building momentum towards surpassing its current record high, it encounters significant resistance around the $0.45 to $0.46 range. This resistance has been evident since early December, but the long-term perspective remains optimistic.

Based on an examination conducted on the TradingView platform, it’s predicted that Dogecoin could experience a 34% hike in its price from its current level. However, temporary downtrends (bearish corrections) might occur before the projected surge reaches its peak strength.

Technical Analysis Points To Bullish Dogecoin Movements

Discussing its progress, Dogecoin’s upward trend over the past month has experienced a slowdown after hitting a three-year peak of $0.4735 on November 23. Since that peak, the price of Dogecoin has mainly hovered between this maximum level and a lower point slightly under $0.37.

From my perspective as an analyst, the persistent upward trend in Dogecoin’s price since November indicates that the current resistance may not endure much longer. As highlighted by crypto expert MadWhale on the TradingView platform, Dogecoin has breached multiple established resistance levels recently, suggesting a notable change in market sentiment. Remarkably, these resistance levels stretch from $0.3 to $0.46 – price points that Dogecoin hasn’t reached for over three years.

MadWhale underscored that this change in pace isn’t happening alone; it’s accompanied by a surge in trading activity, which is a significant sign of growing investor curiosity and engagement. Given this context, technical analysis suggests that the Dogecoin price could exceed $0.48 quite rapidly, with the analyst predicting a future target at $0.62.

It’s worth noting that the analyst has been remarkably on-point with their forecasts, consistently pinpointing crucial support and resistance zones ahead of time during this ongoing bull market. As far back as November 11, the analyst foresaw a significant increase in Dogecoin’s price, predicting it would reach $0.36. At that point, Dogecoin was trading at $0.28787, but remarkably, it shot up to $0.36 within just 24 hours following the prediction.

Short-Term Bearish Corrections Likely Before The Anticipated Rally

Although the overall forecast remains optimistic, it’s important to note that brief periods of decline or stabilization might occur before the anticipated surge in Dogecoin price. Such fluctuations are typically seen in the cryptocurrency market, particularly following the breakthrough of resistance levels. In simpler terms, there’s a possibility that Dogecoin could experience another correction within the next few days.

Significantly, we’ve pinpointed potential areas of support based on the Fibonacci retracement tool. One of these identified support zones falls approximately at $0.355.

Currently, as I type this, Dogecoin is being exchanged for approximately $0.449. Over the last day, it has risen by roughly 4.58%. At present, it’s challenging a significant resistance level at around $0.450, with another potential resistance lurking near the $0.4650 mark.

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2024-12-07 21:41