The cryptocurrency market has witnessed a significant downturn in the past 24 hours, primarily led by Bitcoin’s drop below the crucial $100,000 mark. Dogecoin has not been immune to this decline, with its price tumbling nearly 15% and falling below $0.31. Despite this steep decline, technical analysts suggest that such a price drop is a natural occurrence within Dogecoin’s current market trajectory. This analysis provides a glimmer of hope for Dogecoin supporters, portraying the setback as a normal phase in the ongoing bull cycle.
Weekly Golden Cross and Its Implications for Dogecoin’s Price
Renowned crypto analyst Kevin, known as Kev_Capital_TA on social media, has shed light on the importance of Dogecoin’s weekly golden cross amidst the prevailing market downturn. He notes that Dogecoin experienced this golden cross back in early November, coinciding with the US election period. Historically, such technical indicators are heralds of robust bullish momentum. However, Kevin highlights that the current price pullback aligns with historical patterns where Dogecoin has undergone significant corrections following golden crosses.
Historical Corrections and Market Context
In previous market cycles, Dogecoin encountered three distinct 50% corrections before reaching a cycle top. This historical pattern provides valuable context for the recent price drop to $0.31. According to Kevin, this is a typical bull market pullback, an expected and necessary occurrence for sustaining the market’s bullish structure.
Support Levels and the Golden Pocket Zone
Kevin’s technical analysis delves deeper into identifying Dogecoin’s key support levels, which could influence the meme coin’s next movements. He highlights the macrostructured support zone and the golden pocket, a Fibonacci retracement zone deemed a strong support area. Based on his analysis, a 45% correction from Dogecoin’s recent high would align with these support levels, potentially setting the stage for a continuation of the uptrend.
Potential Scenarios for Dogecoin’s Price Movement
Recently, Dogecoin reached a price high of approximately $0.48 in early December. If Dogecoin can stabilize within the golden pocket zone without closing below the critical $0.26 level on a weekly basis, it could maintain its bullish market structure. However, a breach of support at $0.26 could pose challenges for Dogecoin, potentially altering its price trajectory in the broader trend.
Currently, Dogecoin is trading at $0.3179, reflecting a sharp 12% decline in the past 24 hours and an even more pronounced 22% drop over the past week. This recent decline marks Dogecoin’s lowest level since early November, breaking below the $0.35 threshold for the first time in over a month. Nevertheless, the $0.26 support level remains a critical focus in determining the validity of Dogecoin’s bull run.
