Analysts now claim Dogecoin (DOGE) is in its third major bull cycle, netting a pattern that could retrace its historical price movement.
Grounded in Fibonacci extension levels, the analyst forecasts massive Dogecoin’s value to increase. The cryptocurrency is projected to rise as high as 405%, or around 1.618 Fibonacci extension, which would hit $2.28.
Another tweet by the expert on December 26th, 2016, reinforced the bullish sentiment of this consistent trend in previous cycles.
Unlike the previous time, expectations are even higher, and the forecasts are for a price increase of over 570% from the current levels.
However, according to him, Fibonacci levels, chiefly the 1.618 point, have been an important turning point in financial assets, acting as either a high or low.
Its ability to repeatedly surge past (and then back below) this level in previous cycles gives it credibility for this one.
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DOGE Price, Current Market Conditions
Dogecoin (DOGE), trading at $0.3156 as of press time, had decreased 7.04% over the past day. The market cap was $46.5 billion, reflecting a 7.04% decrease.
The trading volume over the past 24 hours is approximately $2.68 billion, down by 16.98%, indicating reduced trading activity.
CoinMarketCap shows a downward trend in Dogecoin’s price over the last 24 hours, falling from around $0.3395 to $0.316. The price has consistently declined without significant recovery, suggesting bearish sentiment among traders.
Given the current trends, Dogecoin’s short-term market outlook might 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 actively consolidating. On the other hand, we can observe that the DOGE price is bouncing around $0.32.
This is with the recent swings limited within a pink-green dotted range around $0.318 to $0.324. After a notable downtrend, a price drop followed this consolidation phase.
On the Volume Oscillator side, we can see lower trading volumes, currently at 15.79% compared to the previous periods.
As long as the volume is reduced during this consolidation, it often indicates a lack of strong buyer or seller conviction.
Still, it may help predict a volatility spike, as one side will likely regain control. The short-term resistance is below $0.324, while the consolidation zone is below $0.324.
Over the past few days, we have observed support forming near the $0.318 level, preventing further declines. This range is so tight that we are just about to break out.
A bearish bias in the very short term is hinted at by the price hovering in a consolidation phase. The traders take a watchful stance as higher highs and lower lows are missing compared to the recent trend.
To make a bullish reversal, DOGE price must exceed the $0.324 resistance with the added volume. That could attract buyers waving flags that would increase the price to new resistance levels.
The bearish trend could continue if Dogecoin breaks beneath the $0.318 support with a large volume. This opens up a possibility for lower price levels and additional testing of support down the chart.
