Dogecoin Price Down 34% from December High as Analysts Assess Outlook
The Dogecoin price is currently down 34% from its December 8 high of $0.4843. Crypto analyst Kevin (@Kev_Capital_TA) indicated on X that DOGE's chart appears strong compared to many other cryptocurrencies despite the retracement.
Dogecoin: Price Discovery Or Catastrophe?
Kevin stated that Dogecoin looks favorable but acknowledged potential short-term pullbacks, suggesting it could test the $0.26 region. He emphasized that maintaining above the $0.28 to $0.26 range is critical; a weekly close below $0.26 would be detrimental. This target was first suggested in November when Dogecoin was at 45 cents.
On the upside, Kevin identified significant resistance between $0.30 and $0.35, with the next major zone at $0.94 to $1.00. For Dogecoin to enter full price discovery, a break above the Fibonacci levels at approximately $0.53 and $0.59 is necessary.
He highlighted historical patterns, noting that Dogecoin often aligns with its bull market support band before rallies. Current price behavior reflects past cycles, demonstrating a breakout followed by a retest of macro support.
External factors, particularly Bitcoin's performance, could impact Dogecoin's trajectory. Kevin analyzed the DOGE/BTC pair, indicating a need to stay above the macro trend line and golden pocket for upward movement. A breakdown could lead to significant declines.
Macroeconomic and geopolitical developments could also influence Dogecoin. Kevin suggested that a crypto-friendly administration under Donald Trump could promote market growth if accompanied by improved regulations and conflict resolution.
When And How High Will DOGE Rise Again?
Kevin noted that market participants tend to anticipate movements about a month in advance. He speculated that February may be more bullish than January based on recent trends. For price targets, he referenced Fibonacci extensions, projecting resistance zones of $0.94 to $1.32 and potentially $2.19 to $2.78 if previous highs are surpassed.
Long-term predictions depend on technical indicators such as MACD, RSI, Stoch RSI, and the Pi Cycle Top. Kevin indicated intentions to take profits if these signals arise.
As of this writing, DOGE traded at $0.32.
