Emily Walker
Dogecoin has consistently surprised many by making impressive price jumps periodically. The most significant surge happened in 2021, marking Dogecoin’s peak at its highest historical value. However, future opportunities may still be ahead, as analysts suggest that Dogecoin could repeat this journey and perhaps exceed previous highs.
Recent fractal analysis indicates that Dogecoin might reach a price range of $4 to $23 in the foreseeable future.
Understanding Dogecoin’s Price Drop and Historical Trends
Over the past month, Dogecoin’s price changes have noticeably slowed. The last two weeks particularly showed a sharp decline, with the price dipping below the critical resistance level of $0.35 that had been broken in early November.
According to analyst Ali Martinez, Dogecoin is currently undergoing a fractal movement in the weekly candlestick chart. In this context, fractals represent repetitive patterns that appear on varying scales and timeframes. For Dogecoin, these patterns date back to its early days as a meme coin in 2013, providing insights into its potential future.
The accompanying price chart illustrates the fractal movement, showing a significant correction post-breakout from a downward trend that had been established during the previous cycle. Currently, Dogecoin has experienced a drop of about 45.8% from its recent high of approximately $0.48. Historically, similar corrections in previous cycles have led to robust rebounds resulting in new sustained highs.
During the first breakout cycle in 2017, Dogecoin followed this trend closely. After a breakout and subsequent correction, it entered a strong rally, ultimately hitting a peak of $0.01855 in early 2018.
This peak correlated closely with the 1.618 Fibonacci extension from the preceding bear market’s low. The second breakout, which took place in 2021, caused an even more extreme price rise, with Dogecoin reaching an all-time high of $0.7316, greatly surpassing the 2.72 Fibonacci extension level from the previous bear market.
Potential for Another Major Rally in Dogecoin
With past price movements in mind, the current fractal pattern hints that Dogecoin may be gearing up for another rebound in the following months. The size of this rebound largely depends on how the ongoing correction plays out. If the fractal breakout resumes, Dogecoin’s price could potentially enter a parabolic surge, reaching the 1.618 or 2.272 Fibonacci extension levels, or somewhere in between.
Martinez suggests that price targets could range from $4 at the 1.618 extension to $23 at the 2.272 extension.
Presently, Dogecoin is trading at $0.326. A rise to $4 would mean an increase of 1,126%, while a jump to $23 would equate to an astounding 6,955% increase.
Featured image from CNET, chart from TradingView