Dogecoin Price Prediction: Could DOGE Surge 10,200% Based on This Chart Pattern?
Dogecoin Price Prediction: Could DOGE Surge 10,200% Based on This Chart Pattern?
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Henrik Zeberg, a renowned macroeconomist specializing in business cycles and Head Macro Economist at Swissblock, has shared a technical analysis of the Dogecoin price, responding to popular demand. Using the monthly chart of DOGE/USD, Zeberg highlights potential future price targets based on Fibonacci extensions and a notable chart pattern known as the \”Rounding Bottom.\” Could Dogecoin hit $29?
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Zeberg’s analysis leans heavily on Dogecoin’s historical performance, suggesting its price could follow a bullish trajectory mirroring previous cycles. He points out, \”DOGE appears to develop a Rounding Bottom structure in each cycle. We observe how each cycle has produced higher and higher levels into the Euphoria phase.\”
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The Rounding Bottom is a well-established chart pattern frequently observed in financial markets. It indicates a reversal or a significant shift from a downward trend to an upward trend. The pattern is characterized by a gradual, rounded recovery from a low point, resembling the shape of a bowl or a saucer. This pattern signifies a slow and steady accumulation phase among buyers, followed by a gradual increase in price and demand.
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The formation of a Rounding Bottom begins when an asset hits a new low and then gradually starts to recover, with buyers cautiously entering the market, wary of the downtrend but gaining confidence as prices stabilize. As the asset’s price ascends, it reflects increased buying pressure and a decline in selling pressure, suggesting a shift in market sentiment from bearish to bullish.
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To confirm a Rounding Bottom, the price must break through the resistance level that initially led to the pattern’s formation, often marked by the highest point of the curve before the asset’s 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.
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Zeberg utilizes 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.
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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 Zeberg’s 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%.
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At press time, DOGE traded at $0.41.
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Featured image created with DALL.E, chart from TradingView.com