Crypto Market Insights: Dogecoin’s Potential Breakout
Renowned crypto analyst, Trader Tardigrade, has shared insightful observations on the current trends in Dogecoin’s price movement. In light of the recent downturn in the cryptocurrency market, Dogecoin finds itself in a state of flux, confined within a particular trading range. This analysis explores potential scenarios should Dogecoin break free from this range.
Dogecoin’s Price Consolidation: What Lies Ahead?
According to a recent post by Trader Tardigrade, Dogecoin’s price is currently oscillating within a confined range. The analyst posits that a breakout from this range could potentially sustain Dogecoin’s upward momentum. The accompanying chart suggests that if this trend continues, Dogecoin could possibly achieve the much-coveted $1 psychological milestone.
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This anticipated surge would establish a new all-time high (ATH) for Dogecoin, surpassing its previous ATH of approximately $0.73. The chart indicates that this milestone could be reached before the year’s conclusion, providing a remarkable end to a year where Dogecoin has already witnessed a year-to-date (YTD) increase exceeding 245%.
Analyzing the Potential for a Bullish Reversal
In another post, Trader Tardigrade elaborated on the possible onset of a bullish reversal for Dogecoin. He highlighted that the meme coin’s daily Relative Strength Index (RSI) has declined to a zone conducive to a rebound. The analyst pointed out that at this RSI juncture, Dogecoin previously found a local bottom at $0.095 earlier in September, which was followed by a significant rally to $0.48. Should Dogecoin replicate this pattern, it could potentially reach $1.35 from its present standing.
Trader Tardigrade maintains an optimistic perspective on Dogecoin’s price trajectory. He further emphasized in another post that Dogecoin’s price surges in each cycle typically follow a two-step ascent. Consequently, he projects that Dogecoin’s peak in this market cycle could reasonably fall between $3 and $4.
Evaluating Dogecoin’s Price Correction
In a detailed analysis, crypto analyst Kevin Capital delved into Dogecoin’s ongoing price correction, which has persisted for over a month. He noted that Dogecoin experienced a weekly golden cross around the election period but did not undergo the anticipated pullback seen during the 2021 bull run when similar crosses occurred.
Kevin Capital suggests that the current pullback might be the delayed correction Dogecoin should have experienced earlier, which is typical when golden crosses are encountered. He further observed that during the last bull run, Dogecoin endured three 50% corrections on its journey to a cycle top.
Understanding Historical Patterns and Future Projections
Historically, the analyst explained that if Dogecoin’s price hits the macro-structured support and aligns with the macro golden pocket, it would signify a roughly 45% correction, potentially sufficient for Dogecoin to regain its upward trajectory. Kevin Capital expressed concern only if Dogecoin falls below the $0.26 mark on a weekly close.
As of the latest data from CoinMarketCap, Dogecoin’s price is hovering around $0.30, reflecting a decline of over 14% in the past 24 hours.
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