Dogecoin has a history of surprising everyone with its price swings. Remember the huge 2021 rally? Well, some analysts think we might be in for another one, maybe even bigger!
Dogecoin’s Recent Dip and Historical Patterns
Dogecoin’s price has been a bit sluggish lately, even dropping below a key resistance level. But, according to technical analysis using “fractals” (repeating price patterns), this dip might just be setting the stage for a major comeback.
This analysis looks at past Dogecoin price movements, specifically two earlier cycles, to predict future behavior. Both past cycles saw a correction after an initial price breakout, followed by a massive rally to new highs.
- 2017: After a breakout and correction, Dogecoin surged to $0.01855.
- 2021: An even bigger rally followed a similar pattern, reaching an all-time high of $0.7316.
Predicting the Future: A Parabolic Rally?
Based on these past patterns, the current correction could be followed by another huge rally. The extent of this rally depends on how far the price drops. If history repeats itself, we could see Dogecoin hit:
- $4: This is based on the 1.618 Fibonacci extension level. That’s over 1,100% increase from the current price!
- $23: This more ambitious prediction uses the 2.72 Fibonacci extension level, representing a nearly 7,000% increase!
These are, of course, just predictions based on technical analysis. While exciting, it’s important to remember that the crypto market is notoriously volatile. Anything can happen.
