By Michael Scott
Dogecoin flashed the buy signal to suggest the meme coin could shake off the recent downtrend to stage a parabolic run.
Crypto chartist Ali Martinez reflects on Dogecoin price action after the strong momentum spell in November that extended into December. The analyst observes that Dogecoin (DOGE) is no exception to the strong marketwide pullback as the Jerome Powell-chaired Federal Reserve’s hawkish stance soured the ‘Santa rally’. The Fed signaled slower rate cuts, thus contradicting liquidity expectations.
Amid the ongoing rout, DOGE joins the crypto assets, which is the worst hit, though a key indicator now signals that reprieve is imminent. Could the indicator be suggesting the start of an impending parabolic leap?
TD Sequential Indicator Signals Buy
A look into the daily chart shows Dogecoin continues to surrender the post-election gains, with the asset 4.4% down in the past 24 hours to bear a 12.8% decline in the week to change hands at $0.3172, CoinGecko data shows.
Recent insights by crypto analyst Ali Martinez offer optimism that a breakout for Dogecoin is in sight.
The Monday, Dec. 23 X post shows the TD Sequential flashed the buy signal, suggesting an immediate rebound was likely. The indicator applied to time price reversals relative to the previous candle closes.
The buy signal coincides with insights by crypto analyst Javon Marks, who calmed fears over a sustained plunge. The analyst indicated that DOGE was on the verge of staging upward momentum despite the 46% dip from a multi-year peak of $0.48434.
Marks’s Dec. 25 X post reinforces Martinez’s view that Dogecoin is on course to test unchartered territories as he anticipates a 620% surge from the current prices.
Ambitious Leap to Double Digit Confirmed?
Martinex had on Monday, Dec.23, that Dogecoin would replicate the 2017 and 21 price action. The doggy-themed meme coin realized mammoth gains on both occasions to rebound despite the 50% correction after the triple-digital percentage gains.
Reflecting on 2017, the DOGE attained a 212% upsurge, though it attracted a 40% correction before the 5,000% rally to $0.01857.
The 2021 cycle saw the Dogecoin attain a 457% rally before a 56% correction preceding the surge to its peak at $0.74.
In this year, Dogecoin jumped 400% to trade above $0.48 only to surrender 46% to test a new floor price at $0.26216. Martinez argues that Dogecoin could rally 5000% to set a new peak at around $18 if it reclaims the 2017 and 2021 price actions. He cites the uptrend is possible given the ascending channel on its weekly candle chart established in a four-year pattern.
Path to Higher Figures Clear
Crypto analyst Marks demonstrated in the Wednesday X post that DOGE’s path to surpass the $2.28 target he issued at the onset of December is clear. However, Dogecoin needs a 620% surge from its present price.
The analyst elaborates on his prediction, suggesting it could replicate the price action observed in the previous bull market cycles. Marks utilizes the Fibonacci expansion tool to show that Dogecoin rebounds from the bottom and extends beyond the 1.618 level during bull cycles.
The analyst reflects on the 2017 cycle, where Dogecoin overcame resistance to peak above $0.00748. This aligned with the 1.618 Fibonacci level when it hit bottom in 2015 at $0.00009.
The 2021 cycle mirrored the previous cycle pattern as the Dogecoin rallied above the 1.618 Fibonacci level, coinciding with a $0.03912 price point. The asset would attain the current all-time high (ATH) of $0.73 from the floor level of $0.00168.
The analyst indicates that the 1.618 Fibonacci level in the present run rests around the $2.28 price point, which suggests a rally to the milestone is likely if Dogecoin replicates the historical pattern.