In the ever-evolving world of cryptocurrency, a keen analyst has provided a daily chart for Dogecoin, highlighting pivotal price levels as the beloved meme coin aims for the symbolic $1 benchmark. Although Dogecoin has faced significant volatility and a downward spiral in recent weeks, the analyst remains confident about its potential for a price surge.
Price Movements and Technical Analysis
The analyst on TradingView, known by the handle ‘TheHunters_99’, tracked Dogecoin’s previous price movements, noting its consolidation within a defined channel following a dramatic surge in November. This consolidation phase was eventually followed by a steep decline, dragging the coin back down to previous low points.
Recent trading activity suggests, however, that Dogecoin has broken free from this restrictive price channel, indicating a possible resurgence in bullish sentiment. The analyst’s chart utilizes Fibonacci extension levels—key tools for pinpointing potential support and resistance areas in the crypto realm—to outline significant target points for Dogecoin’s journey toward the coveted $1 price.
The analyst identified the initial target at the 1 Fibonacci level, which sits at $0.50. Following that, the next critical milestone is pegged at the 1.618 Fibonacci level, or $0.70, suggesting that Dogecoin could nearly double its current market price.
Targets and Projections
Moreover, the analyst pointed out another essential target in the range of $1 to $1.10, corresponding to the 2.618 Fibonacci level. This price point is particularly interesting as it may serve as an important psychological barrier where many investors might decide to cash out their profits.
Looking even further ahead, there’s an ambitious projection targeting the 4.236 Fibonacci level, situated just below $1.70. Though this is more speculative, it would represent a staggering 400% increase from Dogecoin’s current value, estimated to be under $0.40, confirming a significant upward trajectory.
While this analysis paints an encouraging picture for Dogecoin’s future, the analyst stresses the importance of maintaining several support levels beneath $0.297. These levels could act as a safety net during potential market downturns, providing some reassurance to investors.
Recent Trends and Market Sentiment
Right now, Dogecoin appears to be on the mend, displaying a 10% gain in the last 24 hours and trading at around $0.34, even after enduring a downturn of 15.4% over the past week.
Despite the recent bearish trend, analysts continue to express optimism about Dogecoin’s price path. Another analyst, KrissPax, has chimed in with insights that indicate the potential for robust growth ahead for the meme coin.
KrissPax pointed out that in early September, Dogecoin’s Relative Strength Index (RSI) dropped below the 40-mark on a daily timeframe. This plunge into nearly oversold territory preceded a remarkable rally, boosting Dogecoin’s value by more than 400%.
Now, the current RSI for Dogecoin has dipped below 40 once more. This development could echo past behavior, hinting at the possibility of a similar bullish trend resuming. If the RSI follows suit as it has before, projections suggest that Dogecoin’s price might soar as high as $0.60.
Source: Bitcoinist
