Crypto

Is Dogecoin’s Price Crash a Strategic Move? Analyst Predicts New ATH Above $1.5

The Dynamics of Dogecoin’s Price Amid Crypto Market Volatility

Over the past day, Dogecoin has mirrored the volatility affecting the broader cryptocurrency landscape. On February 3, the meme-inspired token experienced a significant decline, plummeting by double-digit percentages as the market faced a widespread selloff, causing numerous cryptocurrencies to undergo mass liquidations. Dogecoin was not immune to these developments, with a substantial number of investors experiencing liquidations.

Despite the immediate challenges, crypto analyst ÐOGECAPITAL (@DimaPotts36) posits that this decline forms a crucial part of a larger strategy, potentially positioning Dogecoin to exceed its historical peak and aim for a new high between $1.50 and $2.10.

Interpreting Dogecoin’s Price Decline Through Historical Patterns

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According to ÐOGECAPITAL’s recent analysis, Dogecoin’s latest downturn aligns with its broader market cycle. The analyst presented insights that correlate Dogecoin’s current behavior with its past bullish cycles. In a forecast from November 24, 2024, the analyst anticipated a noteworthy correction, citing previous instances where the price had retracted after hitting the 78.6% Fibonacci level in earlier cycles.

Previously, Dogecoin had ascended to this pivotal Fibonacci level before undergoing a sharp 56% decline, which subsequently paved the way for a substantial rally. The analyst underscored the potential for this pattern to recur, advising investors to brace for notable corrections as the asset approaches new highs. With Dogecoin currently experiencing a similar retracement, ÐOGECAPITAL suggests that the conditions are ripe for the next phase of a rally.

Potential for Dogecoin’s Price Surge Beyond $1.50

Following the anticipated pullback, which saw Dogecoin reach a low of $0.2237 recently, the analyst observed that Dogecoin is preparing for a resurgence towards new heights. In a recent commentary, he reiterated his conviction that the asset will soon continue its upward momentum.

Once the retracement concludes, Dogecoin might resume its ascent, surpassing multi-year resistance thresholds. In this scenario, the analyst noted that Dogecoin could target a peak of at least $1.5 or even reach an upper limit of $2.10. These projections are based on Fibonacci extension levels derived from the 2022 bear market low.

Currently, Dogecoin is navigating its third cycle and may replicate the outcomes observed in its second cycle. Notably, the price forecasts do not end here, as the Fibonacci extension analysis suggests that Dogecoin could potentially reach as high as $3.94 in this cycle.

Although recent price drops have generated bearish sentiment, ÐOGECAPITAL’s analysis offers a more optimistic perspective. At present, Dogecoin is trading at $0.2636, marking an increase of approximately 6.3% over the past 24 hours. Nonetheless, it remains down by about 21.3% over a seven-day period, having fallen below the support level of $0.31. To achieve the $1.5 target, Dogecoin enthusiasts must first reclaim the $0.31 support and then surpass resistance at $0.5 before ultimately breaking its current all-time high of $0.73.

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author avatar
Emma Horvath
After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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