A new bearish signal has emerged for Dogecoin’s short-term price action. The TD Sequential indicator has given a signal to sell Dogecoin. At this point, the asset has just rebounded from a 23% drop.
Today, Dogecoin is trading at $0.4200, up 4%. The sell signal suggests that the recently reclaimed $0.40 area could be lost again due to another correction.
While this prediction may hurt those who entered the Dogecoin market when the price was at its highest, these declines are normal and part of the journey toward unprecedented price ranges. Ultimately, those who remain patient during the downturn will be rewarded.
Historical instances where Dogecoin rewarded investors after testing their patience
Specific instances in Dogecoin's history where significant drops occurred before the asset's parabolic trends.
For example, during the 2016/2017 cycle, Dogecoin experienced two major drops: one down 39% and another down significantly by 84%. However, by the end of the cycle, Dogecoin's total increase exceeded 9,400%.
Similarly, during the 2020/2021 season, Dogecoin experienced pullbacks of 56% and 53% while setting a new all-time high. However, by the end of the season, its cumulative increase was approximately 31,000%.
Now, Martinez emphasizes the possibility of Dogecoin soaring 3,233% from its current position. This surge could bring it to a new high of $14. However, this target is overly ambitious as it would result in Dogecoin's market cap exceeding $2 trillion, surpassing Bitcoin's current valuation.
It is noteworthy that this price prediction suggests Dogecoin can reflect its historical patterns in an ascending price channel.
Other factors indicate that DOGE's price will reach double digits
DOGE is currently testing the middle band of the Gaussian channel, indicating a potential rebound to $11, similar to the surges in 2017 and 2020.
At the same time, based on Fibonacci retracement levels, Martinez believes Dogecoin could rebound to $23, which aligns with Dogecoin reaching its peak at the 2.272 Fibonacci level during the 2020/2021 bull market. Public. Sticky. Good: Six Six Coin (weekly early review strategy analysis for Bitcoin and Ethereum from Monday to Saturday, long-term recommendations for quality individual coins and live analysis)
A conservative view on Dogecoin
While this is an ambitious price prediction for Dogecoin, the more conservative outlook suggests that Dogecoin's price could peak at $3 this quarter, with this meme coin potentially reaching this price level in the next six to twelve months.
