Emily Walker
Recently, Dogecoin has shown significant strength in its price movement, successfully overcoming key resistance levels, leading to positive expectations about its near-term performance. However, this upward trend may soon experience significant price fluctuations, as a cryptocurrency analyst has forecasted potential pullbacks in the days ahead.
Past Patterns Indicate Volatility for Dogecoin Investors
Ali Martinez, an experienced cryptocurrency analyst and trader, has examined the current and historical price movements of Dogecoin after its recent rise. His in-depth analysis uncovered concerning price patterns that suggest Dogecoin may face two significant pullbacks in the near future.
The analyst highlights trends from previous market cycles, noting that steep corrections often occur before a price resurgence, indicating similar movements might be expected in the current bull cycle.
Martinez pointed out that during its remarkable 9,470% rise in the 2017 bullish market, Dogecoin faced two major corrections of approximately 40% and 84%. Additionally, the 2021 surge of over 30,700% also saw notable pullbacks of 46% and 53%.
As DOGE demonstrates strong upward momentum en route to its next bull run, Martinez believes that the past could repeat itself, implying the meme coin may undergo two significant corrections while approaching critical price levels. He remarked, “As DOGE enters another potential parabolic phase, it’s important to remember that corrections are a natural part of the process.”
Interestingly, these expected declines might serve as consolidation points for the cryptocurrency, allowing DOGE to stabilize and potentially enhance its chances for future rallies.
Martinez emphasizes that patience and belief are crucial for investors aiming for significant gains with Dogecoin, reassured by the fact that there’s no need for alarm over the recent 13% dip.
In terms of short-term price predictions, Martinez anticipates a potential 45% increase attributed to the formation of a bullish flag pattern. If the support level at $0.35 remains intact, he believes this pattern could initiate a rally towards the $0.56 mark.
Retail Investor Confidence in DOGE Surpasses That of Bitcoin
Despite potential pullbacks, Dogecoin has garnered greater interest from retail investors compared to Bitcoin, the largest cryptocurrency, as shown by a recent poll conducted by Martinez regarding which asset would be better for a $100 investment in the current market environment.
Receiving 83% of the votes over Bitcoin, Martinez noted that “retail investors are favoring DOGE over Bitcoin.” He explained that Bitcoin often appears expensive to many, while DOGE is being viewed as an attractive, budget-friendly option with promising profit potential, especially with the backing of prominent figures like billionaire Elon Musk.