Henrik Zeberg, a prominent macroeconomist known for his knowledge of business cycles and Chief Macro Economist at Swissblock, has published a technical report analysis for Dogecoin price by popular demand. In the monthly DOGE/USD chart, Zeberg highlights potential future prices based on Fibonacci extensions and a specific chart pattern known as “rounding bottom”.

Will the price of Dogecoin reach $29?

Zeberg’s technical approach relies heavily on Dogecoin’s historical performance, which suggests its price may follow the bullish trajectory reflected in previous cycles. In his analysis, he notes: “DOGE appears to develop a bottom-rounding structure with each cycle. We watched as each cycle produced higher and higher levels in the euphoria phase.

A rounded bottom is a proven chart pattern often seen in financial markets that signals a reversal or significant transition from a downtrend to an uptrend. The pattern can be recognized by its gradual, rounded return from the lowest point, resembling the shape of a bowl or saucer. This pattern indicates a leisurely and steady phase of accumulation among buyers, followed by a gradual escalate in price and demand.

The formation of a rounded bottom begins when an asset hits a fresh low and then slowly begins to recover, with buyers gradually entering the market, wary of the downtrend but beginning to gain confidence as prices stabilize. As the asset price increases, it reflects increased buying pressure and decreased selling pressure, suggesting a shift in market sentiment from bearish to bullish.

To confirm a rounded bottom, the price must break above the resistance level that initially led to the formation of the pattern, often marked by the highest point of the curve, before the asset’s price began to decline. In the case of Dogecoin price, this is a price level around $0.49, which Zeberg identifies as the first price target.

A breakout usually must be accompanied by an escalate in volume and can signal a long-term uptrend. If DOGE manages to break this resistance in the coming days, the future could be definitely bullish.

Zeberg used Fibonacci levels to provide specific future price targets for Dogecoin. Fibonacci extension levels specifically marked on the chart for Dogecoin include the 1.27 Fib ($0.4924), which Zeberg identifies as target 1 with a potential upside of 75%.

The next price target for Dogecoin price is the 1.618 Fib at $0.08030, which is referred to as Target 2 with a projected upside of 180% by Zeberg. The 2.618 Fib at $3.2738 is marked as Target 3, which is an ambitious target implying an 8x upside.

Moreover, the 3.618 Fib levels at $13.3641 and 4.618 at $54.4064 are also marked, although they are not directly related to immediate targets, indicating very sanguine long-term opportunities if the market enters another phase of euphoria similar to the previous ones cycles.

Discussing these goals, Zeberg warns: “Could we see even crazier developments? Nothing is certain, but the setup looks like a repeat of what we saw in earlier phases. This statement refers to Zeberg’s main target in this bull market, which is between the Fibonacci levels of 3.618 and 4.618 at $29, assuming the overall market remains in a mania phase for an extended period. In this scenario, Dogecoin would grow by 10,200%.

At press time, DOGE was trading at $0.41.

Featured image created with DALL.E, chart from TradingView.com