Amidst recent fluctuations in the Dogecoin price and its market crash, a crypto analyst has shared a bullish forecast for this number one meme coin, identifying key support and resistance areas that could dictate its future price trajectory. The analyst has identified a “rock solid” support zone for Dogecoin, signaling a potential rally to new highs once this key level is broken.
Dogecoin Price Prepares For Lift Off Above 0.28 Support
X (formerly Twitter) crypto analyst Balo has presented a detailed price chart depicting an analysis of Dogecoin using Fibonacci retracement levels. The analyst recognized the $0.2814 price level at the 0.786 Fibonacci retracement zone as a “rock solid” support area that could serve as a potential launchpad for Dogecoin’s next rally.
Although Dogecoin experienced a price crash and briefly tested the $0.2626 level, Balo confidently asserts that this sharp decline was merely a corrective low. This indicates that Dogecoin may be in the final stages of consolidation before its next leg up.
Over the past few weeks, the Dogecoin price has traded sideways after rallying over $0.4 in November. The popular meme coin quickly gave up these initial gains once market volatility set in and broader sentiment shifted from meme coins.
Although bearish pressures plague Dogecoin, Balo disclosed that breaking through the resistance level at $0.339 could lead the meme coin to higher price levels. The $0.2814 support zone will act as a critical safety net for Dogecoin, potentially preventing further price declines.
Based on the analyst’s price chart, Dogecoin is projected to retest the 0.786 Fibonacci retracement level at $0.2814 before rising sharply to break above $0.34, confirming its bullish momentum. Once this price is broken, the analyst expects Dogecoin to overcome two critical resistance areas: $0.43 and $0.48.
After Dogecoin clears these resistance levels, it is expected to aim for a final target of around $0.6 or higher. This means that the analyst expects Dogecoin to double in value once it breaks out of its consolidation phase and surpasses these key resistance areas.
Analyst Calls Dogecoin’s Local Bottom
Trader Tardigrade, another crypto analyst on X, shared a detailed fractal analysis of Dogecoin’s historical price action. He forecasted bullish price targets for Dogecoin after comparing similar trend patterns in the meme coin’s previous and current cycles. Based on these chart patterns, Dogecoin appears to have reached a local bottom around $0.26 to $0.3, as indicated by the green arrow and pink trendline support.
If Dogecoin follows its historical patterns of soaring after hitting a local bottom, Trader Tardigrade has forecasted that the meme coin’s first target in 2025 would be $0.5. This price could act as a resistance level, with the analyst predicting even higher targets for Dogecoin. He anticipated a steady price increase, predicting that Dogecoin can reach $1, $1.5, and an ultimate target of $3.2
Featured image created with Dall.E, chart from Tradingview.com
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