Dogecoin Price May Explode By 10,200% Based On Classic Chart Pattern: Expert
Henrik Zeberg, a prominent macroeconomist known for his expertise in business cycles and Head Macro Economist at Swissblock, released a technical analysis for the Dogecoin price by popular demand. Within the monthly chart of DOGE/USD, Zeberg highlights potential future prices based on Fibonacci extensions and a specific chart pattern known as the Rounding Bottom.
Will Dogecoin Price Hit $29?
Zebergs technical approach draws heavily on the historical performance of Dogecoin, suggesting that its price might follow a bullish trajectory mirrored in previous cycles. In his analysis, he points out, DOGE seems to develop a Rounding Bottom structure in each Cycle. We observe how each cycle has produced higher and higher levels into the Euphoria phase.
The Rounding Bottom is a proven chart pattern often seen in financial markets which signals a reversal or a significant shift from a downward trend to an upward trend. The pattern is recognized by its gradual, rounded recovery from a low point, resembling the shape of a bowl or a saucer. This pattern indicates a slow and steady accumulation phase among buyers, followed by a gradual increase in price and demand.
The formation of a Rounding Bottom begins when an asset hits a new low and then slowly starts to recover, with buyers gradually entering the market, wary of the downtrend but starting to gain confidence as prices stabilize. As the assets price ascends, it reflects increased buying pressure and a decline in selling pressure, suggesting a shift in market sentiment from bearish to bullish.
To confirm a Rounding Bottom, the price must break through the resistance level that initially led to the patterns formation, often marked by the highest point of the curve before the assets price began to fall. For the Dogecoin price, this is the price level around $0.49 which Zeberg identifies as the first price target.
The breakout typically needs to be accompanied by an increase in volume and can signal a long-term bullish trend. If DOGE manages to break this resistance in the coming days, the future could be massively bullish.
Zeberg utilized Fibonacci levels to provide specific future price targets for Dogecoin. The Fibonacci extension levels specifically marked on the chart for Dogecoin include the 1.27 Fib ($0.4924) which Zeberg labels as target 1 with a potential gain of 75%.
The next price target for the Dogecoin price is the 1.618 Fib at $0.08030 which is referred to as target 2 with an anticipated increase of 180% by Zeberg. The 2.618 Fib at $3.2738 is marked as target 3, an ambitious goal representing an 8x increase.
Moreover, the 3.618 Fib at $13.3641 and 4.618 at $54.4064 are also marked, though not explicitly linked to immediate targets, indicating very optimistic long-term possibilities should the market enter another phase of euphoria akin to past cycles.
In discussing these targets, Zeberg cautions, Could we see even more crazy development? Nothing is certain but the setup looks like a repetition of what we have seen in earlier phases. This statement refers to Zebergs main target for this bull run, which stands between the 3.618 and 4.618 Fibonacci levels at $29, assuming the entire market remains in a mania phase for an extended period. In this scenario, Dogecoin would achieve a gain of 10,200%.
At press time, DOGE traded at $0.41.
Read more: https://www.newsbtc.com/news/dogecoin/dogecoin-price-10200-classic-chart-pattern/
Text source: NewsBTC
