Cryptocurrency analyst MadWhale has given a bullish outlook for Dogecoin's price. The analyst predicts that this most important meme coin may experience a significant increase and emphasized the support areas that market participants should focus on.
In an article, MadWhale predicted that Dogecoin's price could soon rise by 37% to $0.55. However, this cryptocurrency analyst warned that a short-term bearish trend or consolidation phase may occur before a major upward trend. MadWhale stated that this is nothing to worry about, as these patterns often appear before significant increases.
MadWhale highlighted key support levels using Fibonacci retracement levels to better manage Dogecoin's price fluctuations. The accompanying chart from the cryptocurrency analyst shows that based on Fibonacci levels, the $0.30 level is a major support level. A rebound from this support level could push Dogecoin towards the $0.55 target.
This cryptocurrency analyst also pointed out that Dogecoin's price has shown significant strength, breaking through long-term resistance levels. MadWhale mentioned that this indicates an important shift. The analyst stated that this is a key development as Dogecoin gains momentum with increasing trading volume and growing influence on social media.
As for resistance levels, $0.40 could be the next major obstacle for Dogecoin's price. Cryptocurrency analyst Kevin Capital recently stated that $0.40 is a key resistance level for Dogecoin, representing the 0.786 Fibonacci level. He noted that Dogecoin has been testing this Fibonacci level but was rejected on November 19.
While the analyst believes that Dogecoin's price will eventually break through this resistance level, he stated that for this most important meme coin to witness any significant price increase, the breakout must be 'clean and fierce'. After Donald Trump's victory, Dogecoin broke through the $0.40 level but failed to hold that support level and has been consolidating within the $0.30 range since then.
Cryptocurrency analyst Trader Tardigrade stated that Dogecoin's price is ready for the next round of increase. In a post on X, this analyst indicated that Dogecoin is prepared for the next round of increase. He identified hidden bullish divergence on the 4-hour Relative Strength Index (RSI) chart, which provides a bullish outlook for Dogecoin.
Trader Tardigrade pointed out that this RSI hidden bullish divergence occurs when the price makes higher lows while the RSI makes lower lows. He added that this signal indicates that Dogecoin's price will continue to rise. Additionally, it is worth mentioning that cryptocurrency analyst Ali Martinez recently confirmed that the Dogecoin bull market has begun, noting that these corrections are common in every parabolic bull market recorded for Dogecoin.
