Emily Walker
Over the last day, Dogecoin’s price movement has mirrored the volatility affecting the wider cryptocurrency market. The popular meme coin experienced a significant drop on February 3, falling sharply as the market saw widespread sell-offs, leading to numerous liquidations across various digital assets. Unfortunately, Dogecoin was also caught in this wave, leaving many traders facing liquidations.
Despite this challenging period, crypto analyst ÐOGECAPITAL (@DimaPotts36) believes that this decline is not the end; instead, it may set the stage for Dogecoin to surpass its previous all-time high, potentially reaching levels between $1.50 and $2.10.
Dogecoin’s Price Drop Follows Established Patterns
ÐOGECAPITAL’s recent analysis suggests that the recent price drop was to be expected as part of a larger market cycle for Dogecoin. The analyst provided insights by referencing historical price trends and comparing them to past bullish phases. On November 24, 2024, predictions were made about a notable price correction, citing how prices had previously retracted after hitting the 78.6% Fibonacci level during earlier cycles.
During that period, Dogecoin had reached this pivotal Fibonacci point, only to experience a significant -56% decline before rebounding dramatically. The analyst pointed out that this trend could repeat, signaling that investors should brace for major corrections on the journey to achieving new heights. With Dogecoin now undergoing a comparable retraction, ÐOGECAPITAL believes favorable conditions are emerging for the next rally phase.
Upcoming Price Recovery Could Drive DOGE Above $1.50
After experiencing the anticipated pullback, which saw Dogecoin hit a low of $0.2237 recently, the analyst indicated that it is now poised to make a move towards achieving new highs. In his recent comments, he expressed optimism about Dogecoin’s imminent upward movement.
Once this pullback phase concludes, the expectation is that Dogecoin will break through long-standing resistance levels. The analyst mentioned that this could propel the meme coin towards a minimum target of $1.50, potentially reaching as high as $2.10. These goals are based on Fibonacci extensions derived from the lows observed during the 2022 bear market.
Currently, DOGE is navigating its third cycle and may replicate the success seen in its second cycle. Importantly, the projections don’t end there; Fibonacci analysis suggests that Dogecoin could even soar to $3.94 this cycle.
Even with the negative sentiment surrounding the recent decline, ÐOGECAPITAL’s analysis unveils a positive outlook. As it stands, DOGE is trading at $0.2636, which reflects a 6.3% increase over the last day. However, it remains approximately 21.3% lower over the week, having slipped beneath the $0.31 support mark. For Dogecoin bulls to push towards $1.50, reclaiming the support at $0.31 and breaking beyond the resistance at $0.50 would be essential goals before attempting to surpass its historical peak of $0.73.