Dogecoin was one of the best-performing crypto assets following a recent upswing in the general market in the past few weeks. However, considering several indicators and current price action, a correction might be forthcoming for the largest meme coin.
Bearish Price Signal Emerges For Dogecoin
Dogecoin’s renewed price uptrend could be poised for a setback as Dima James Potts, a market expert and investor has predicted that DOGE may be heading for a correction in the short term. His prediction comes as market dynamics continue to shift after the meme coin’s recent rally, which has sparked uncertainty among investors and traders.
The market expert analysis is bolstered by historical price trends, particularly in the last cycle, which triggered a notable pullback for Dogecoin amidst its bull run, suggesting a similar scenario in the ongoing market cycle. With speculation about profit-taking growing significantly, this forecast raises concerns about the stability of meme coin’s current upward momentum.
According to the analyst, during the previous market cycle, Dogecoin saw a sharp decline of about 56% short after hitting the 78.6% Fibonacci level. Meanwhile, the meme coin has once again reached the 78.6% Fibonacci level this week, implying that the same price correction could be on the horizon before resuming its upside strength toward higher levels in the ongoing cycle.
While a substantial pullback could be imminent, James Potts has highlighted that his prediction does not suggest a sell signal, rather, it is merely a comparison of past cycle price movements with this current cycle. “As I mentioned in my previous posts, expect significant pullbacks on the way to the top,” he added.
It is worth noting that the expert anticipates a market top for Dogecoin at the psychological $10 price mark. James Potts has consistently underscored DOGE’s path to the level in several posts, which he expects to kick off in 2025.
Considering DOGE’s past performances surpassing each cycle, as evidenced by a 9,000% increase in 2017 and an 18,000% spike in 2021, the expert is confident that DOGE may see a much larger rally this time around should the trend persist.
Can DOGE’s Upward Momentum Hold?
Earlier today, Dogecoin witnessed a drop to the $0.37 level after a notable price uptick during the weekend. However, the meme coin appears to be slowly regaining its upside momentum as DOGE has rebounded to $0.4366, indicating a 1% increase in the last 24 hours.
The brief pullback might be attributed to waning traders’ optimism and interest in DOGE. Data from CoinMarketCap shows that its trading volume has turned negative, falling by over 28% in the past day, suggesting that investors might be dumping the asset to secure gains. Should investors go on a selling spree, Dogecoin could be set to experience a decline in the following days.
Featured image from Unsplash, chart from Tradingview.com
