According to analyst Javon, the price of Dogecoin ($DOGE) may increase to recover. He notes the recurring trend in its historical price cycles, where each cycle sees this cryptocurrency surpass the Fibonacci extension of 1.618.

If this pattern continues, Dogecoin could rise more than 570% from the current level, potentially driving its value to $2.28 or more. Javon's prediction is based on historical market fluctuations and Fibonacci retracement levels, which have identified key price points for DOGE.

Historical cycles show strong growth potential

Javon outlines three main price cycles of Dogecoin, starting from 2014. In the first cycle, from 2014 to 2017, Dogecoin experienced a consolidation phase near its lows, followed by a breakout. During this phase, the price returned to the Fibonacci level of 0.618 before surging to the Fibonacci extension of 1.618, peaking near $0.0021.

A similar pattern appeared in the second cycle from 2017 to 2021, with Dogecoin's price consolidating before rising to around $0.11777. Both cycles show consistent adherence to Fibonacci levels, with bullish phases following pullbacks.

The third cycle currently underway, spanning from 2021 to 2024, has shown a similar trend. After the correction following the price surge in 2021, Dogecoin stabilized at around $0.0604 before entering a recovery phase.

Current price volatility indicates that the cryptocurrency has tested the Fibonacci retracement level of 0.618, aligning with the behavior observed in previous cycles. Javon's forecast sets Dogecoin's next target near the Fibonacci extension of 1.618 at $2.30, depending on favorable market conditions.

Technical indicators and support levels

Recent data shows that the price of Dogecoin peaked at around $0.476 in November 2024 before entering a correction phase. Currently trading around $0.325, this cryptocurrency finds support at $0.28 and faces resistance near $0.39 and $0.43.

The moving averages further add to these observations. The 50-period moving average (MA50), which tracks short-term price trends, rose sharply during the October breakout but then flattened out, reflecting the correction.

Meanwhile, the 200-period moving average (MA200) continues to trend upward, indicating overall market optimism. Importantly, the price of Dogecoin remains above MA200, suggesting that the long-term trend is still intact.

Volume analysis shows that the price surge of Dogecoin from October to November was accompanied by notable trading activity, confirming strong buying interest. However, trading volume gradually declined in December, reflecting a decrease in market confidence during the correction phase. Current trading volume at low levels indicates a cautious stance among market participants as they await clearer signals for DOGE's next move.

As Javon notes, breaking the main resistance levels near $0.39 could lead to a new bullish phase, potentially pushing the price towards the expected target above $2. Failing to maintain the support level near $0.28 could trigger a further decline, with MA200 providing the next important level.

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