Emily Walker
According to technical analyst Kevin (@Kev_Capital_TA), Dogecoin (DOGE) is on the verge of a significant rally. He points out that the current market correction resembles the pattern observed during DOGE’s impressive gains in its previous bull cycle. He believes that if Bitcoin (BTC) continues to perform well, DOGE is poised for a substantial upswing, given the recent price patterns.
Potential for a 1,400% Surge in Dogecoin
DOGE recently experienced a sharp decline, dropping from approximately $0.33 to $0.20 within three days—a nearly 40% fall. This decline was largely influenced by a market reaction to US President Donald Trump’s announcement of new tariffs on Canadian and Mexican imports, triggering fears of a trade conflict. The resulting market volatility led to DOGE’s price falling an additional 25% on one day, reaching levels last seen in November of the previous year. Bitcoin similarly dropped to $91,200 during this broader market decline.
Following Trump’s announcement of a deal with Canada and Mexico, which lessened tariff concerns, DOGE began to recover, countering the initial panic selling in the cryptocurrency market. Kevin argues that the recent rebound indicates that DOGE may have completed its second significant correction phase of this bull cycle. He reflects on the patterns in DOGE’s previous cycle, where two notable declines preceded a significant upward trend. The recent 40% drop is regarded as a parallel to those past events, suggesting a repeat of history.
In previous analysis, Kevin highlighted specific Fibonacci extension levels that could serve as potential targets if DOGE mirrors its earlier bull market performance. He identified resistance levels at $0.2867 (0.618 Fib), $0.30 (0.65 Fib), $0.41 (0.786 Fib), $0.59 (0.886 Fib), $0.74 (1.00 Fib), $0.93 (1.0866 Fib), $1.57 (1.272 Fib), $2.28 (1.414 Fib), and $3.95 (1.618 Fib).
Kevin marked $0.93 as an immediate resistance zone, denoted by a highlighted blue box. He also pointed out a potential supply area around $2.28 and set a high-end target at $3.95, which would represent a staggering 1,400% increase if bullish price momentum continues.
This analysis emphasizes the significance of historical trends in the cryptocurrency market, suggesting that the recent fluctuations may have marked the end of DOGE’s second major correction, similar to previous cycles. If broader market conditions stabilize and Bitcoin holds its ground, the meme coin could be set for a noteworthy price rally.
Kevin stated, “In my opinion, #Dogecoin just completed its second major correction of its bull cycle. Very similar to last cycle and the drops in terms of percentage were very similar. If all goes well with #BTC then #Doge should begin its next leg soon.”
While it remains uncertain whether the price movements will align precisely with Kevin’s projections, the quick recovery from $0.20 has sparked optimism among traders that DOGE may indeed replicate its previous bull run. The upcoming weeks will be crucial, especially if DOGE manages to break through initial major resistance levels.
As of the latest update, Dogecoin is trading at $0.26.
