Amidst a market crash, Dogecoin finds itself at a crucial juncture that could dictate whether investors face losses or enjoy substantial gains in the future. An analyst suggests the latter may prevail as the meme coin appears to be establishing a significant generational bottom.
Dogecoin’s Generational Bottom
Johnny Brah, a crypto analyst, has noted on TradingView that Dogecoin is in the process of forming a generational bottom. This development coincides with a broader market downturn pushing Dogecoin’s value towards the $0.14 support level. Brah asserts that this historical pattern bodes well for Dogecoin, considering its past responses to similar generational bottoms.
Referencing previous bullish cycles, the analyst highlights a reset in the “w1 stoch rsi” for Dogecoin’s price. Such a reset has historically preceded significant rallies in the DOGE price after marking a generational bottom.
Illustrating this point with the example of the 2021 rally, where Dogecoin soared from around $0.003 to an unprecedented high of $0.7 in just five months, underscores the potential for another substantial uptrend if history repeats itself.
Despite subsequent bearish trends and breaching of support levels, the current Stochastic RSI reset suggests that Dogecoin could be gearing up for another notable rally to achieve new all-time highs.
Projected Price Targets for Dogecoin
In the event of Dogecoin emulating past performances with a price surge, it could swiftly surpass the $1 resistance level. However, the analyst envisions even loftier goals for Dogecoin’s price if this scenario materializes.
While acknowledging multiple hurdles to overcome, the analyst forecasts a potential price escalation beyond $10, reaching into the $20 range. At the pinnacle of this surge lies the $24 level, signifying a remarkable 16,500% increase from the current price. The analyst cautions that once Dogecoin breaks above certain levels, it may not revisit lower values.
Presently, Dogecoin trades at $0.14, showing a 2.93% daily increase. Nonetheless, similar to the wider market trend, the meme coin has experienced a substantial decline over the past week, registering a -12.16% drop, according to data sourced from CoinMarketCap.
