Emily Walker
Crypto analyst Trader Tardigrade has shared his perspective on the recent price movements of Dogecoin. He highlighted that the cryptocurrency is currently facing a range-bound price action following the latest downturn in the crypto market and discussed potential implications of a breakout for the popular meme coin.
Current Situation of Dogecoin Prices and Possible Outcomes
In a post on X, Trader Tardigrade mentioned that Dogecoin’s price is confined within a specific range. He suggested that if Dogecoin manages to break free from this range, it could lead to an upward trend. His analysis included a chart indicating that such a breakout could help Dogecoin reach the target of $1 psychological level if the positive trend continues.
Achieving a price of $1 would mark a new all-time high (ATH) for Dogecoin, surpassing the existing ATH of approximately $0.73. The analyst’s chart suggested that this upward movement might occur before the year’s end, which would cap off a remarkable year for Dogecoin, noted for a year-to-date gain exceeding 245%.
Trader Tardigrade elaborated on his optimistic viewpoint, explaining that Dogecoin’s daily Relative Strength Index (RSI) has returned to a potential rebound area. He highlighted that at the current RSI levels, DOGE had earlier reached a local low of $0.095 in September before experiencing a significant rally to $0.48. Should the meme coin replicate this price increase, it could soar to $1.35 from its existing value.
Trader Tardigrade remains confident about Dogecoin’s prospects. He noted that historically, Dogecoin tends to surge in price in a two-step progression during market cycles. He estimated that the possible peak for Dogecoin in this current market cycle could be between $3 and $4.
Evaluation of Dogecoin’s Price Correction
Furthermore, analyst Kevin Capital provided a thorough analysis of the ongoing price correction for Dogecoin, which has lasted over a month. He pointed out that although Dogecoin exhibited a weekly golden cross prior to the election period, it did not experience the typical pullback seen in the 2021 bull run during a similar crossover.
Kevin Capital believes that the current pullback represents the correction that Dogecoin should have faced then, as such corrections are common with golden crosses. He recalled that Dogecoin experienced three significant 50% corrections in the last bull run on its path to the peak cycle.
Historically, the analyst indicated that if the Dogecoin price approaches macro-level support and a macro golden pocket, it would indicate around a 45% correction necessary for DOGE to resume its upward trajectory. He expressed that he would only become concerned if Dogecoin were to close below $0.26 on a weekly basis.
As of now, Dogecoin is trading at approximately $0.30, reflecting a drop of more than 14% in the past 24 hours, according to CoinMarketCap.