Investors and traders of Dogecoin have been struck with liquidations following a notable price pullback, triggered by a broader crypto market whirlwind. Dogecoin has dropped below the $0.30 level, finding support at the $0.25 mark. While this correction has triggered fear and uncertainty, analysts claim it is a key part of DOGE’s journey to new heights.
A Rally To A New All-Time High For Dogecoin Brewing?
With Dogecoin facing significant bearish pressure, pessimism is beginning to take over market sentiment. However, Trader Tardigrade, a technical analyst and investor has weighed in on the negative price movements, offering hope about a potential shift for DOGE toward the upside again in the short term.
Trader Tardigrade’s optimistic forecast is based on past market cycles. Looking at the chart shared by the analyst, Dogecoin’s recent price pullback may be a crucial prelude to its next significant surge toward a new all-time high.
Despite brief drops, the meme coin is still in a bullish overall structure because past patterns show that corrections frequently come before sharp price swings. “No need to sweat the Dogecoin Pullback. When you understand the figures, it’s just a process that DOGE has to undergo,” the expert stated.
Back in the 2016 cycle, a similar pullback was seen just before a significant rally. Dogecoin witnessed a retracement of about 59.76% followed by a bull run of over 9,222%. The same pattern was spotted in the 2021 bull cycle, where the meme coin retraced by 56.2% before experiencing a massive upsurge of more than 30,693%.
With DOGE seeing constant bearish movements, Trader Tardigrade believes that these past trends are likely to repeat in this cycle. Should the past trend unfold, the expert anticipates a much bigger rally than the last cycle, targeting close to the $3 price mark.
The analyst expects this cycle to be bigger due to the fact that each cycle in the past has produced larger rallies than the last. Thus far, watching key support levels is crucial as a rebound could occur anytime soon, triggering buying momentum and a significant breakout in the coming weeks.
Next All-Time High Could Be $1.50 Or $2.10
Trader Tardigrade’s forecast aligns with crypto expert DOGECAPITAL’s analysis of DOGE’s short-term performance. Also examining past cycle rallies, the analyst highlighted the current pullback is expected, suggesting its significance in ushering in a major bull run.
Once the pullback is over, DOGECAPITAL predicts that the meme coin might rally to new highs between $1.50 and $2.10 in the upcoming months. The expert noted that this is the area where DOGE will face its next major level of resistance similar to previous trends, depending on timing.
With recent major developments like the potential introduction of Spot Dogecoin ETF and the Department of Government Efficiency (D.O.G.E), the meme coin could experience unprecedented long-term growth.
Featured image from Unsplash, chart from Tradingview.com
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