Dogecoin is currently trading at $0.14, but not for long. According to a cryptocurrency analyst, technical analysis indicates that Dogecoin is preparing for a move towards $0.68. There’s an captivating prospect coming up for the meme king coin amidst increased activity in its ecosystem, suggesting that a major price move may be on the horizon.
According to technical analysis conducted by cryptocurrency analyst Dave The Wave using technical indicators including the Fibonacci retracement, Dogecoin is currently looking bullish and is on track to break the all-time record.
Dogecoin price action is printing bullish
Dave the Wave, a renowned cryptocurrency analyst known for accurately predicting Bitcoin’s crash during the 2021 bull market, took to social media platform X to share his observations on Dogecoin’s current price action. As such, Dave the Wave’s analysis has attracted the attention of his followers, many of whom trust his market knowledge given his track record.
His analysis is based on Dogecoin’s movement on the 1-day candle time frame. In his analysis, Dave the Wave pointed out that DOGE appears to be on the verge of breaking out of an ascending triangle formation. This came after the meme coin successfully broke above a descending triangle formation earlier in the month.
Since this breakout, Dogecoin has maintained an upward trajectory and has experienced steady growth. Now the meme coin is once again testing the resistance level coinciding with the apex of the newly formed ascending triangle.
Based on this price action, Dave the Wave expressed a bullish outlook for Dogecoin. To support his projection, he used the Fibonacci retracement tool to identify a potential target price. He highlighted the 0% Fibonacci retracement level, which is based on the retracement from the 2021 DOGE high to reach a final target of around $0.687. Achieving this goal would mean a price raise of approximately 725% from the point of breaking the descending triangle.
Can DOGE set a modern all-time record?
Although technical analysis paints a rosy picturethe journey to a modern record for Dogecoin will not be without challenges. One of key challenges is the presence of significant resistance zones. Dave the Wave highlighted critical resistance around the 2024 high of $0.22, along with another resistance level at $0.32, which could tardy down Dogecoin’s upward momentum.
As of this writing, Dogecoin is hovering around $0.14, having lost approximately 3% of its market value over the last 24 hours. Attempts to break above $0.148 over the past 48 hours have seen plenty of rejection. This price level currently appears to be the next immediate resistance that Dogecoin must overcome before it can reach higher levels.
Featured image created with Dall.E, chart from Tradingview.com
