Expert Says Dogecoin's 13% Drop Is No Reason to Panic
Veteran market analyst Ali Martinez insists that historical data shows that Dogecoin's current 13% drop is not a reason to panic.
Dogecoin has corrected 13% from its weekly high reached on November 12. Prior to that, the largest meme coin by market cap rose to a three-year price high of $0.4355, helped by a favorable macroeconomic environment.
Notably, veteran analyst Ali Martinez anticipated the downtrend, warning investors of an upcoming correction. He cited TD Sequential on multiple timeframes that generated a buy signal on the DOGE price chart.
Now that the correction has materialized, Martinez urged Dogecoin supporters to remain resilient in the face of price declines. He argued that the corrections were healthy, as historical trends show that Dogecoin is poised for another bull run once the downturn ends.
The analyst makes statements that support historical data.
In a tweet on Wednesday, Martinez showed his audience Dogecoin's historical correction patterns and how they preceded further price increases. He then argued that the 13% drop was no reason to panic.
Martinez noted that Dogecoin followed a similar correction pattern, rising 9,470% and 30,700% in 2017 and 2021, respectively. He also stated that the meme coin has seen two major corrections, but still saw a significant upward trend in those years.
In 2017, DOGE corrected by 40% and 84% on its way to a 9470% price explosion, peaking at $0.01355 in January 2018. The token has also repeated this pattern, correcting by 56.51% and 53.25% in 2021.
However, Dogecoin ultimately rose a staggering 30,700% to reach its current all-time high of $0.7376 in May 2021. Drawing on the analogy, Martinez called for patience and conviction, insisting that these are the necessary conditions to “become a true Dogecoin millionaire.”
Dogecoin Price Prediction After Correction
Notably, Martinez had previously voiced his price expectations for Dogecoin after the correction phase. According to the analysis, the experienced market analyst suggested that the cryptocurrency rate would grow by more than 500% to $2.4 and an ambitious growth of 4440% to $18.
The analyst based his claim on Dogecoin reaching the upper boundary of its ascending channel. A 500% rally would occur if the meme king reached the middle of the channel, while 4440% would represent a theoretical rally to its upper boundaries.
Interestingly, Marines gave Dogecoin a higher estimate. In another analysis, he predicted that the meme coin would rise more than 7,000% to $23, citing the growing influence of Elon Musk.
Meanwhile, Dogecoin is trading at $0.369, up 15% over the past 24 hours as it begins a recovery.
The coin has a chance to grow further after the correction. Whether to buy it or not is a personal matter for each investor.
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