DOGECOIN (DOGE) could be at the forefront of another massive rally, according to an analysis by the technical analyst Kevin (@kev_capital_ta). He believes The current correction closely reflects the model that prepared the terrain for the explosive doge gains during its previous bull cycle. In his opinion, the crash of the Dogey prices over the days, measured by percentage, is almost identical to the last race, suggesting that the same part is now ready to embark on its next major step if Bitcoin (BTC) holds stable.
Dogecone defined to explode 1,400?
DOGE crashed from about $ 0.33 to $ 0.20 in just three days, a dive of almost 40%, before finishing at $ 0.20 on Monday. This rapid slowdown coincided with a market -scale shock launched by the announcement of US President Donald Trump last Friday New fares on goods from Canada and Mexico. While the fear of a trade war has overcome the financial markets, investors rushed to move their funds in safer assets, which drops from Doge by only about 25% on Monday and reducing it at levels not seen since November 8 of last year. Bitcoin was also assigned, going to $ 91,200 as part of the larger sale of the market.
The recovery began once Trump revealed on Monday an agreement with Canada and Mexico which attenuated certain concerns concerning prices, overthrowing a large part of the panic flight from cryptocurrencies. According to Kevin, the rhythm of the rebound supports the thesis that Dogecoin may have already completed his second significant corrective phase of this bull race. He underlines the past cycle of the medal, where two large falls preceded an extended price increase. The most recent decline of almost 40% in Doge, in its words, “very similar to last cycle And the decreases in terms of percentage, ”is proof that history could repeat itself.
In an earlier graph, Kevin described specific fibonacci extension levels which, if Doge follows a trajectory similar to his last bull race, could act as future targets during a recovery. He identified $ 0.2867 at the 0.618 FIB, $ 0.30 at the 0.65 FIB, $ 0.41 at the 0.786 FIB, $ 0.59 AT THE 0.886 FIB, $ 0.74 AT THE 1.00 FIB, $ 0.93 AT THE 1.0866 FIB, $ 1.57 B, and $ 3.95 at 1.618 FIB.
It reported $ 0.93 as an immediate resistance region, indicated by a blue box on its graph, and another potential supply area almost $ 2.28. He then highlighted $ 3.95 (the FIB of 1.618) as the ultimate increase if the optimistic momentum persists. An increase in this price level would be an increase of more than 1,400%.
The emphasis placed on the repetition of historical models focuses on the idea that the recent turbulence of the market may have concluded the second major correction of Doge, similar to what happened in its previous cycle. With this phase now perhaps behind, the meme part could be positioned for a significant race if the macro-conditions conditions remain stable and Bitcoin, often considered as the anchor of the market, does not weaken.
As Kevin said, “in my opinion #dogecoin has just finished his second major correction in his bull cycle. Very similar to the last cycle and the drops in terms of percentage were very similar. If all is well with #BTC, #doge should start, it’s soon the leg. »»
Although it remains to be seen if the price action will take place exactly as Kevin’s graphic suggests, the quick rebound of $ 0.20 gave merchants that Doge could indeed reflect his last bull race. The coming weeks could prove to be crucial, especially if the part grows above the first major levels of resistance.
At the time of the press, Dogecoin exchanged $ 0.26.
Star image created with dall.e, tradingView.com graphic