Dogecoin recently took a 10% dive, but a new analysis suggests a rebound might be on the horizon.
Entering a Demand Zone
According to technical analysis, Dogecoin has entered a key demand zone. This means buyers are usually more active in this price range, potentially leading to a price increase. The coin already showed a short-term price reversal after hitting this zone, suggesting a shift from a downtrend to an uptrend.
Short-Term Bullish, Long-Term Uncertain
While the short-term outlook appears bullish, the overall market trend remains neutral-bearish. Significant resistance sits around $0.235-$0.24. Breaking through this level would be a strong bullish signal. However, there’s a chance of further price drops if it can’t break through.
Statistical Support for a Bounce
Statistical analysis based on past price patterns suggests a low probability (around 16.5%) of the recent low being revisited. Conversely, there’s a high probability (around 88.6%) of Dogecoin creating a new daily high. This strengthens the case for an upcoming price bounce.
A Bold Prediction: Reaching $0.95?
Another analysis predicts an even more significant price surge for Dogecoin. Based on a “Bull Flag” pattern observed on the weekly chart, a price target of $0.95 is suggested. This represents a massive 352% increase from the current price. This prediction is based on previous cycles within this pattern that resulted in huge price increases. However, it’s important to remember that this is a prediction, and the actual outcome may differ significantly.