Is DOGE Price Poised For Monumental Gains: Analysts Predict Surge To $2.28

Dogecoin's Bullish Trend: Analysts Predict Surge to $2.28

Analysts suggest that Dogecoin (DOGE) has entered its third major bullish cycle, exhibiting a pattern that could potentially retrace its historical price movement.

Based on Fibonacci extension levels, analysts forecast a significant increase in Dogecoin's value. The cryptocurrency is projected to rise up to 405%, or around 1.618 Fibonacci extension, which would reach $2.28.

Confirming the bullish sentiment, an expert's tweet on December 26, 2016, highlighted the consistent trend observed in previous cycles. Expectations this time are notably higher, with forecasts predicting a price increase exceeding 570% from current levels.

Notably, according to the analyst, Fibonacci levels, particularly the 1.618 point, have acted as a pivotal turning point for financial assets, serving as either a high or low. Its repeated ability to move past (and subsequently below) this level in previous cycles lends credibility to its significance in this cycle.

Current Market Conditions

At press time, Dogecoin was trading at $0.3156, marking a 7.04% decrease over the preceding day. The market capitalization declined by 7.04% to $46.5 billion.

Trading volume over the past 24 hours reached approximately $2.68 billion, representing a 16.98% decrease. This indicates a reduction in trading activity.

CoinMarketCap data reveals a downward trend in Dogecoin's price over the last 24 hours, dropping from around $0.3395 to $0.316. The price has consistently declined without significant recovery, suggesting bearish sentiment among traders.

Short-Term Predictions and Outlook

On the hourly Dogecoin/Tether (USDT) chart, the cryptocurrency appears to be consolidating within a narrow trading range. The price action is centered around $0.32, with recent fluctuations contained within a range bounded by $0.318 and $0.324.

Despite a notable downtrend, a consolidation phase has ensued. Volume levels remain low, currently at 15.79% compared to previous periods.

Reduced trading volume during consolidation often indicates a lack of conviction among buyers and sellers. However, it may also foreshadow a surge in volatility as one side gains dominance. The immediate resistance level is $0.324, while the consolidation zone is situated below this point.

Support has formed near the $0.318 level over the past few days, limiting further declines. The range is so tight that a breakout is imminent.

The cryptocurrency exhibits a bearish bias in the short term due to its prolonged consolidation phase. Traders are exercising caution in the absence of higher highs and lower lows compared to the recent trend.

To initiate a bullish reversal, DOGE must surpass the $0.324 resistance level with increased volume. This could attract buyers, propelling the price to newer resistance levels.

Conversely, a bearish trend could ensue if Dogecoin breaches the $0.318 support with substantial volume. This could lead to lower price levels and additional testing of support.