Dogecoin is one of the best-performing crypto assets following the overall market rise in recent weeks. However, considering multiple indicators and current price trends, this largest meme coin may be on the verge of a pullback.
Dogecoin shows bearish price signals
The price uptrend for Dogecoin that has restarted may soon face setbacks, as market expert and investor Dima James Potts predicts that Dogecoin may enter a pullback in the short term. His prediction comes amid changing market dynamics following Dogecoin's recent rise, raising uncertainty among investors and traders.
The analysis from market experts is supported by historical price trends, especially in the previous cycle, which triggered a noticeable pullback for Dogecoin in a bull market, suggesting that the current market cycle may also experience a similar situation. As speculation about profit-taking significantly increases, this prediction raises concerns about the stability of the meme coin's current upward momentum.
According to the analyst, in the previous market cycle, Dogecoin briefly dropped about 56% after reaching the 78.6% Fibonacci level. Meanwhile, this week, the meme coin has once again touched the 78.6% Fibonacci level, indicating that a similar price adjustment may be imminent before regaining upward momentum and moving towards higher levels in the current cycle.
While a significant pullback may be imminent, James Potts emphasized that his prediction does not indicate a sell signal but merely compares past price trends with the current cycle. "As I mentioned in previous posts, a significant pullback is expected on the way to the peak," he added.
Notably, the expert predicts that the market top for Dogecoin will be at the psychological price level of $10. James Potts has repeatedly emphasized the path for Dogecoin to reach this level in multiple articles, predicting that this trend will begin in 2025.
Considering that DOGE's past performance has surpassed every cycle, such as a 9,000% increase in 2017 and an 18,000% increase in 2021, experts believe that if this trend continues, DOGE may experience a larger-scale rebound this time.
Can DOGE's upward momentum be maintained?
Earlier today, Dogecoin fell to $0.37 after a significant price increase over the weekend. However, with Dogecoin rebounding to $0.4366, indicating a 1% increase in the past 24 hours, the meme coin seems to be slowly regaining upward momentum.
The brief pullback may be due to a decrease in trader optimism and interest in Dogecoin. Data from CoinMarketCap shows that Dogecoin's trading volume has turned negative, dropping over 28% in the past day, indicating that investors may be selling the asset for profits. If investors sell off heavily, Dogecoin may decline in the coming days.
