Dogecoin often surprises people with large price increases from time to time. The most classic rebound was the one in 2021, when Dogecoin reached a new all-time high. However, the best may not be yet to come, because from a technical analysis point of view, Dogecoin has a great chance to replicate this performance or even surpass it.
In particular, recent fractal analysis shows that Dogecoin could rise to between $4 and $23 in the future, which is promising.
Dogecoin price pullbacks and historical trends
Over the past month, Dogecoin's trend has slowed down significantly, especially in the last two weeks, when the price has fallen significantly, falling below the key support level of $0.35 in early November.
According to technical analysis by cryptocurrency analyst Ali Martinez, Dogecoin is currently showing a "fractal" pattern on the weekly chart. In technical analysis, fractals refer to similar trends that recur over time and at different scales. For Dogecoin, this fractal pattern can be traced back to its early performance as a meme coin in 2013, giving us a historical perspective to predict its current trend.
As shown in the chart below, after breaking through the downward trend line drawn from the high of the previous cycle, Dogecoin experienced a significant correction. This wave of correction caused Dogecoin to fall to a low of 45.8% from the previous $0.48. However, as shown in the figure, in the past two cycles, such corrections eventually ushered in a strong rebound, driving the price to a new high.
In 2017, Dogecoin also experienced a similar trend.
After the first breakout, after a round of adjustments, Dogecoin began to enter a parabolic rise, eventually reaching a historical peak of $0.01855 in early 2018. This peak happened to be close to the 1.618 Fibonacci extension level of the previous bear market low.
In 2021, Dogecoin entered a second breakout cycle, and this time the rally was even more violent, ultimately setting a new all-time high at $0.7316, surpassing the 2.72 Fibonacci Extension level of the previous bear market low.
Fractal Points to Another Parabolic Rally for Dogecoin
Based on the current fractal pattern and previous price action, Dogecoin appears to be preparing for another similar parabolic rally. The magnitude of this rally will depend on the extent of the current correction.
If the fractal breakout happens again, Dogecoin’s price could see a massive rally to either the 1.618 or 2.272 Fibonacci Extension levels, or somewhere in between these two levels.
According to Martinez’s analysis, this means that Dogecoin’s target price could potentially fall between the 1.618 Fibonacci Extension level of $4 and the 2.272 Fibonacci Extension level of $23.
The current price of Dogecoin is around $0.326. If the price rises to $4, it would mean a 1,126% increase, while if it rises to $23, it would be a 6,955% increase.