Dogecoin price sank on Monday, reaching its lowest level since November last year. This decline was part of the ongoing crypto and stock market sell-off. While the DOGE price crash may continue, some analysts believe that it has now bottomed, opening a chance for a parabolic move ahead.
Crypto Analyst Sees Dogecoin Price Being in “Final Capitulation”
Dogecoin price dropped from a high of $0.4835 on December 8 to the current $0.2572, a 50% crash. In an X post, Trader Tardigrade, a popular crypto analyst with over 70,000 followers, noted that it had moved to the final capitulation.
He used a three-day chart and pointed to the capitulation that happened in August when it dropped to $0.08080. As such, he expects that the Dogecoin price will surge to the key resistance level at $0.85, up by 230% from the current level.
In another X post, Tardigrade noted that the coin has had similar reversals in the past. He identified that the coin dropped by 60% in 2016 and surged by over 9,221% in the next few years. The coin also had a 56% drop in 2020 and then soared by over 30,000% by 2021.
DOGE Price Analysis: Technicals Points to a Rebound
The weekly chart peaked at $0.4832 in December and then tumbled to a low of $0.2017 on Monday as sentiment worsened. It moved slightly below the key support level at $0.2295, its highest swing in March last year.
Dogecoin has remained slightly above the 50-week Exponential Moving Average (EMA), a sign that bulls are in control for now. It also dropped to the major S/R pivot point of the Murrey Math Lines at $0.2017. This is a crucial point where an asset tends to stage a reversal after falling sharply.
There are also signs that the value of DOGE has formed a falling wedge pattern, a highly bullish pattern. Dogecoin price is also forming a small hammer pattern, a popular bullish reversal sign.
Dogecoin Target Prices
Dogecoin will likely rebound in the next few weeks, with the next point to watch being the ultimate resistance of $0.400. This price is about 53% above the current level.
However, the bullish DOGE price forecast will become invalid if it drops below the major S&R pivot point at $0.2017, its lowest level this week. A drop below that level will point to more downside to the strong, pivot, reverse at $0.09766.
Frequently Asked Questions (FAQs)
Dogecoin price may stage a strong a strong bullish breakout in the coming weeks as it forms a jammer and a falling wedge chart pattern.
There is a likelihood that the DOGE price will surge to a high of $0.40, the ultimate resistance point of the Murrey Math Lines.
The DOGE price may drop to the strong, pivot, reverse point at $0.10, down by about 60% from the current level.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/is-dogecoin-price-ready-to-rise-as-expert-hails-final-capitulation/
✓ Share: