Dogecoin is experiencing a correction phase after a significant rally that pushed its price to $0.426, a level not seen since its notable 2021 bull run. This pullback has seen the cryptocurrency down by 8.5% in the past 24 hours, accumulating a 13% loss from its recent high.
- Recent Rally and Correction: Dogecoin’s price surged dramatically over two weeks, reaching a peak of $0.426, followed by a correction phase where some investors began taking profits.
- Analysis of Price Movement: Crypto analyst Kevin highlighted a symmetrical triangle pattern in Dogecoin’s price chart, suggesting a possible price correction. This pattern was identified using the 1-hour candlestick timeframe and is characterized by lower highs and higher lows.
- Market Sentiment and Technical Indicators: The Relative Strength Index (RSI) indicated an overbought condition with a reading above 90, which typically suggests a potential pullback or correction in price.
- Support Levels: Should the price continue to decline, Kevin identified a significant support zone between $0.30 and $0.26. This aligns with the golden pocket retracement levels, indicating a potential 30-40% correction from the recent top.
- Potential for Continuation: Despite the current correction, there’s still a possibility that the symmetrical triangle could be a bull flag pattern, hinting at a potential bullish breakout. If confirmed, this could propel Dogecoin towards a much higher price target of $0.90.
As Dogecoin navigates this volatile phase, the coming days will be crucial in determining whether the cryptocurrency will undergo a sharp correction or resume its upward trajectory, possibly reaching new highs. Investors and enthusiasts will be keenly watching the technical developments and market sentiment to gauge the next significant move for Dogecoin.
