Dogecoin’s Recent Performance and Potential Market Correction
Dogecoin has emerged as one of the standout cryptocurrencies following a recent surge in the broader market. However, analysis of various indicators and the current price movement suggests that a potential correction might be looming for this leading meme-inspired digital currency.
Emerging Bearish Signals for Dogecoin
The upward trajectory of Dogecoin’s price may be encountering a temporary hurdle. Market analyst Dima James Potts has projected that DOGE might be on the verge of a short-term correction. This forecast is influenced by shifting market dynamics following the recent rally of the meme coin, which has stirred uncertainty among investors and traders.
Potts’ analysis is supported by historical price patterns, notably from the last market cycle, which witnessed a significant pullback for Dogecoin amidst its bull run. This scenario could potentially repeat in the current market cycle, raising concerns about the sustainability of Dogecoin’s recent upward momentum. Speculation about profit-taking is intensifying, further fueling these concerns.
According to Potts, during the previous market cycle, Dogecoin experienced a sharp decline of approximately 56% shortly after reaching the 78.6% Fibonacci level. This week, the meme coin has once again touched the 78.6% Fibonacci level, suggesting a possible price correction might occur before it resumes its upward trend toward higher levels in the ongoing market cycle.
While a significant pullback seems possible, Potts clarifies that his prediction does not constitute a sell signal. Instead, it is a comparison of past cycle price movements with the current cycle. “As I mentioned in my previous posts, expect significant pullbacks on the way to the top,” he elaborated.
The expert anticipates a market peak for Dogecoin at the psychological $10 price level. Potts has consistently emphasized DOGE’s journey toward this milestone in several posts, which he expects to commence in 2025.
Given DOGE’s historical performance, surpassing expectations in each cycle with increases of 9,000% in 2017 and 18,000% in 2021, the expert remains optimistic that DOGE could experience an even more substantial rally if the trend continues.
Will DOGE Sustain Its Upward Momentum?
Recently, Dogecoin experienced a dip to the $0.37 level following a significant price rise over the weekend. However, the meme coin appears to be gradually regaining its upward momentum, with DOGE rebounding to $0.4366, marking a 1% increase over the past 24 hours.
This brief pullback could be attributed to diminishing trader optimism and interest in DOGE. Data from CoinMarketCap reveals a decline in trading volume by over 28% in the last day, indicating that investors might be selling the asset to secure profits. If a selling trend continues, Dogecoin may face further declines in the coming days.
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