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A robust market optimism has triggered a bullish run for Dogecoin as the dog-themed meme coin attracts notable price gains over many major cryptocurrency assets with an over 50% daily profit. While the coin has surged significantly over the past few days, a crypto analyst has predicted that the renewed upward strength may be poised for a rejection.
Historical Trends Reoccuring For Dogecoin
In an important update for Dogecoin investors and traders, Master Kenobi, a market expert and trader has warned of a potential rejection of Dogecoin’s recent price rally in the short term. The analyst’s forecast is based on trends from the previous cycle, whereby DOGE encountered strong resistance after a similar upside movement.
Furthermore, his perspective suggests that without persistent bullish support, there is a possibility that the meme coin might witness the same price hurdles as the last cycle’s rally, which could result in a brief correction or price consolidation.
Master Kenobi believes a rejection in DOGE’s upswing is probable as he anticipates a final major resistance at $0.33 before retesting its all-time high and the trend line at $0.40. It is worth noting that the decline is likely to be followed by a consolidation phase of roughly 1 to 2 weeks, as seen in the last bull cycle. “This scenario would align perfectly with what we observed during the same period in the previous cycle,” he added.
According to the market expert, the 91-day rectangle currently depicts an almost identical price trend to the past cycle. Due to this, Kenobi believes that history may be repeating itself, creating similar conditions for a breakout as indicated by the comparative pattern of initial rejection accompanied by a consolidation phase.
Even though DOGE’s past cycle performance indicates a pullback, the expert also highlighted that the likelihood of a continued upward trend is fueled by this fractal-like likeness, especially if crucial support levels remain firm after the impending rejection phase.
Thus far, traders and investors are closely observing Dogecoin’s upbeat momentum for a possible correction in order to adjust their positions in light of consistent rising demand for the second-largest meme coin.
The Next Few Weeks May Be Bumpy For DOGE
Master Kenobi’s insightful analysis aligns with crypto expert, Kevin’s forecast, who has also pointed out a probable price correction for DOGE in the upcoming weeks after examining Dogecoin’s weekly golden cross formation.
According to Kevin, the last time the meme coin formed a weekly golden cross, it experienced a surge of about 200% in the same week. However, in the next 3 weeks that followed, DOGE consolidated and saw a 50% correction.
Fast forward to 4 years later, the meme coin is displaying the same cross and pump trend once more. Considering the development, Kevin believes that at this range it is logical that DOGE might witness a decent size correction or simply consolidate for a short time.
Featured image from Adobe Stock, chart from Tradingview.com
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