Emily Walker
Currently, Dogecoin is experiencing a downward trend as it adjusts after a notable increase in value over the last couple of months. Despite this, analyses indicate that, on a broader timeline, the premier meme coin is still situated in a bullish trend.
In a review of Dogecoin’s price fluctuations on a 2-week candlestick chart, crypto expert Javon Marks predicted a potential surge of 570% for DOGE, provided it surpasses the 1.0 Fibonacci extension level.
Fibonacci Analysis Suggests Positive Trends
As noted in a technical analysis of Dogecoin by Javon Marks on the social media platform X, the cryptocurrency is currently undergoing its third significant bull cycle since its inception. By examining Dogecoin’s past performance during similar bullish phases, Marks believes the digital asset is primed for a 570% rise from its current market value.
Marks utilized the Fibonacci extension tool to identify the 1.618 mark as a key bullish target for this cycle. Previous bull runs have been characterized by surpassing this Fibonacci level when viewed from the low of the last bearish period. Thus, Dogecoin has historically broken through this level on prior upward trends.
The chart below shows that previous bearish phases for Dogecoin were marked by rebounds off a stable support level, followed by robust upward movements that exceeded the previous all-time highs.
Currently, Dogecoin’s third cycle mirrors this pattern, yet it has encountered resistance as it attempts to reach the former high of $0.7316. The price faced several setbacks at around $0.475 in early December, leading to a decline from that point onward.
As of now, Dogecoin is priced at $0.316, reflecting a 50% decrease since December 8. Additionally, data from Coinmarketcap indicates that the leading meme coin has fallen by 12.5% over the last week. However, analyst Javon Marks believes historical trends suggest a substantial possibility for a price rebound towards Fibonacci extension levels and new all-time records.
Forecasts Suggest Dogecoin May Exceed $2.8
The cyclical price behavior of Dogecoin significantly characterizes its market trends, evidenced by repeated breaks above the 1.0 and 1.618 Fibonacci extension levels following bearish downturns. At present, the bearish trend relies on overcoming initial resistance at the 1.0 Fibonacci extension near $0.569. A breakthrough here could allow Dogecoin bulls to test the former all-time high.
If the ongoing cycle continues to reflect the patterns of earlier cycles, Dogecoin could surpass the 1.618 Fibonacci extension, potentially reaching around $2.28. This would position Dogecoin for further positive momentum and additional price achievements.