Analysts now claim that Dogecoin (DOGE) is in its third major bullish cycle, creating a pattern that could revert to its historical price volatility.
Based on Fibonacci extension levels, the analyst predicts that Dogecoin's value will surge significantly. This cryptocurrency is forecasted to rise as much as 405%, or about the 1.618 Fibonacci extension level, reaching $2.28.
Another tweet from the expert on December 26, 2016, further reinforced the optimistic sentiment regarding this consistent trend in previous cycles.
Unlike last time, expectations are even higher, forecasting a price increase of over 570% from the current level.
However, according to him, Fibonacci levels, primarily the 1.618 point, are critical turning points for financial assets, serving as resistance or support levels.
The ability to continuously rise above (and then return below) this level in previous cycles lends reliability to this cycle.
DOGE Price, Current Market Conditions
Dogecoin (DOGE), trading at $0.3156 at the time of reporting, has declined 7.04% in the past day. The market capitalization is $46.5 billion, reflecting a decrease of 7.04%.
The trading volume over the past 24 hours is approximately $2.68 billion, down 16.98%, indicating reduced trading activity.
CoinMarketCap shows a bearish trend for Dogecoin over the past 24 hours, dropping from about $0.3395 to $0.316. Prices continue to decline without significant recovery, indicating a pessimistic sentiment among traders.
With the current trend, Dogecoin's short-term market outlook could remain cautious or bearish.
Short-Term Predictions and Outlook
On the hourly chart of Dogecoin against Tether (USDT), it appears to be in a narrow trading range and is actively consolidating. On the other hand, we can see DOGE's price fluctuating around $0.32.
These recent fluctuations have been confined within the pink-green range around $0.318 to $0.324. After a significant downtrend, the price has fallen following this consolidation phase.
On the volume oscillator side, we can see lower trading volume, currently at 15.79% compared to previous periods.
As long as volume decreases during this consolidation process, it often indicates that buyers or sellers lack strong conviction.
However, it could help predict a sudden price spike, as one side is likely to regain control. The short-term resistance is below $0.324, while the consolidation area is below $0.324.
In recent days, we have observed a support threshold forming near the $0.318 level, preventing further downward momentum. This range is too narrow for us not to break out.
The very short-term bearish trend is implied by price fluctuations during the consolidation phase. Traders are cautious as higher highs and lower lows are lacking compared to recent trends.
To reverse the bullish trend, DOGE's price must surpass the resistance level of $0.324 with increased trading volume. This could attract buyers waving flags, helping the price rise to new resistance levels.
The bearish trend could continue if Dogecoin breaks below the support level of $0.318 with high volume. This opens up the possibility of lower prices and further testing of support levels on the chart.