Dogecoin, the popular meme coin, has been experiencing a correction in its price after a significant surge over the past two months. Despite this, technical analysis indicates that Dogecoin is still trading in a bullish setup on a larger timeframe. Crypto analyst Javon Marks has predicted a potential 570% rally for DOGE, contingent upon a break above the 1.0 Fibonacci extension level.
Marks’ technical analysis, posted on social media platform X, highlights Dogecoin’s current bullish cycle as the third major one since its inception. Drawing from historical price action, Marks suggests that Dogecoin is poised for a substantial increase from its current price. The Fibonacci extension indicator points to the 1.618 level as the first important bullish target for this cycle, as previous cycles have seen Dogecoin surpassing this level.
The chart analysis shows a pattern of bearish phases followed by strong bullish candles breaking above previous cycle highs. Dogecoin’s current cycle is following a similar pattern, with the coin facing resistance around $0.475 after attempting to reclaim the previous cycle’s all-time high of $0.7316. Despite a 50% price decline since early December, Marks believes that Dogecoin still has the potential for a parabolic rally to new all-time highs.
The cyclical price movements of Dogecoin have historically seen a break above the 1.0 and 1.618 Fibonacci extension levels from the bearish market low. Currently, breaking above the 1.0 Fib extension level at around $0.569 could set the stage for Dogecoin bulls to challenge its current all-time high. If the current cycle follows previous trends, Dogecoin could potentially surpass the 1.618 Fibonacci extension, reaching at least $2.28 and continuing on a bullish momentum towards other price milestones.
Overall, despite the recent correction in Dogecoin’s price, technical analysis suggests that the meme coin is still in a bullish setup and could potentially see a significant rally in the near future. Investors and traders will be closely watching for a break above key Fibonacci extension levels to confirm the continuation of the bullish trend in Dogecoin’s price chart.
