As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market cycles and patterns. While the current Dogecoin price correction might be disheartening for some investors, it’s important to remember that such corrections are a normal part of any bull run.
Right now, the Dogecoin cost is adjusting following two weeks of significant price surges that propelled it to $0.426 for the first time since last year’s impressive bull run. This adjustment appears to be a temporary one, as it often occurs after such intense rallies, with some investors deciding to cash out or close their positions. In the past 24 hours alone, Dogecoin has dropped by 8.5%, and since reaching $0.426, it’s fallen by 13%.
On the social media platform X, a cryptocurrency expert, known as Kevin, pointed out an intriguing development in Dogecoin’s recent price trends. This expert suggests that the current price action has formed an unusual symmetrical triangle pattern in Dogecoin, which might either result in a price correction or further upward momentum.
Analyst Says Symmetrical Triangle Favors Price Correction
As a crypto investor, I’ve observed that Dogecoin is currently in a phase of consolidation – a common occurrence before a rally continues. According to my analysis using a 1-hour candlestick timeframe, this consolidation has been ongoing since November 12. This consolidation pattern can be seen through the formation of lower highs and higher lows, creating what appears to be a symmetrical triangle.
Given the bullish trend, the symmetrical triangle is more likely to continue upward. However, an analyst suggests that there’s a stronger possibility for a pullback, particularly because the Daily Relative Strength Index (RSI) indicates an overbought condition above 90. At the time of his forecast, Dogecoin was priced at approximately $0.39. Since then, its value has dropped even more, supporting the idea of a correction in price.
Should the price of Dogecoin continue to drop, Kevin has pinpointed a significant support area roughly between $0.30 and $0.26. This range corresponds with potential golden pocket retracement levels. Essentially, this area indicates that the coin might experience a 30-40% correction from its recent peak at $0.426 in a bull market scenario. As he put it, “In a bull market, a correction of 30-40% is an ideal size.
Considering the persistent optimistic outlook, Kevin admitted in his subsequent message that the price of Dogecoin might exceed his predictions, suggesting that he may have underestimated the potential for continued growth instead of a significant contraction following consolidation.
He suggested the possibility that the symmetrical triangle might actually be a bull flag pattern, which is more typically associated with bullish breakouts. If this is the case, the pattern could pave the way for an upward breakout that would drive the Dogecoin price toward a guaranteed target of $0.90.
Current State Of Dogecoin Price
Currently, Dogecoin is being bought and sold for approximately 0.37 USD. Over the past day, it has dropped by 8.5%. However, despite this recent decline, Dogecoin is poised to end November with its strongest monthly growth in more than three years. The upcoming days will be important in predicting whether this trend continues – either with a steep correction or a surge towards new record highs as the consolidation phase concludes.
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2024-11-16 06:41