Dogecoin might be about to break above $0.30, according to analysts. Let’s dive into why they think so.
Technical Analysis Suggests an Upswing
Analysts are pointing to Fibonacci retracement analysis of Dogecoin’s recent downtrend as a key indicator. The two-month downward trend, coupled with significant trading volume, suggests a potential rebound. This is especially interesting because Dogecoin recently touched its 200-day moving average (MA) for the first time since October 25, 2024.
However, there’s a caveat. If this is just a short-term dip, the low point reached on February 3, 2025, aligns with a Fibonacci support level. This is similar to a previous pattern seen on December 20, 2024, which led to a significant price bounce. Because of this sharp and potentially overdone price drop, analysts predict a new uptrend aiming for $0.38, slightly below the 0.786 Fibonacci level. The recent market sell-off and subsequent calming of investor fears following Trump’s announcement on import taxes may have played a role in this. A break above this level could signal a return to a bull market.
Analyst Opinions: Bullish Outlook
Several crypto analysts share this optimistic view.
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Kevin Capital: On X (formerly Twitter), Kevin Capital noted that Dogecoin seems to have completed its second major price correction of this cycle. He sees this movement mirroring the previous cycle, although the percentage drop was smaller this time.
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Trader Tardigrade: This analyst highlighted a bullish signal on the 4-hour chart of Dogecoin’s MACD (Moving Average Convergence Divergence), suggesting a potential upswing and a return to a bull market.
Current Price and Conclusion
At the time of writing, Dogecoin is trading around $0.26, up over 13% in the last 24 hours (according to CoinMarketCap). The confluence of technical analysis and analyst opinions paints a picture of a potential price surge for Dogecoin in the near future. Keep an eye on it!