Emily Walker
Growing market optimism has led to a significant increase in Dogecoin’s value, with the meme-inspired cryptocurrency experiencing over 50% gains in just one day. While this surge has excited investors, a market analyst has indicated that Dogecoin’s bullish trend may soon face a setback.
Recurring Historical Patterns for Dogecoin
In a recent update for Dogecoin followers, analyst Master Kenobi has highlighted the potential for a decline in the coin’s recent price increase. His analysis draws from past market cycles, where Dogecoin faced significant resistance following similar upward movements.
He cautions that without sustained bullish support, Dogecoin might encounter price challenges akin to those experienced in previous cycles, possibly leading to a short-term drop or stabilization in value.
Master Kenobi predicts that if Dogecoin’s rally continues, it is likely to face major resistance at around $0.33 before attempting to reach its historic peak and a trend line around $0.40. He anticipates that any decline will likely be followed by a consolidation period lasting about 1 to 2 weeks, mirroring patterns seen in prior bull markets. He noted, “This scenario aligns closely with trends from previous cycles.”
The market expert suggests that the current 91-day price pattern is closely resembling historical cycles. This resemblance causes Kenobi to believe that the circumstances for a rally might repeat, featuring an initial rejection followed by a consolidation phase.
Though past patterns indicate a potential pullback, the expert also noted that the chance of continued upward movement remains, especially if essential support levels hold strong following the expected decline.
Traders are closely monitoring Dogecoin’s recent performance for signs of a correction, as demand for the leading meme coin continues to grow.
Potential Volatility Ahead for DOGE
Master Kenobi’s analysis supports the views of another crypto expert, Kevin, who has also predicted a possible price correction for Dogecoin in the coming weeks based on the formation of a golden cross in the weekly chart.
Kevin noted that during the last occurrence of a golden cross, Dogecoin experienced a 200% price hike within a week, but thereafter entered a consolidation phase that led to a 50% price correction over the following three weeks.
Now, four years later, this similar trend is resurfacing. Kevin believes that given current conditions, Dogecoin is likely to undergo a notable correction or a brief consolidation period.