Dogecoin’s price movement is currently in a bearish setup following a surge in the past two months, but analysis suggests a bullish setup on a larger timeframe. Crypto analyst Javon Marks predicts a 570% rally for DOGE if it breaks above the 1.0 Fibonacci extension level on the 2-week candlestick chart. Marks notes that Dogecoin is in its third major bullish cycle and could reach new all-time highs.
Using the Fibonacci extension indicator, Marks highlights the 1.618 level as the first important bullish target this cycle. Dogecoin’s historical price action has shown that breaking above this level leads to significant price increases. The current cycle is playing out similarly to previous ones, with the coin facing resistance around $0.475. Despite a correction path since early December, Marks remains optimistic about a price run to new all-time highs.
Currently trading at $0.316, Dogecoin has seen a 50% price decline since December 8 and a 12.5% drop in the past week. However, Marks believes there is a high likelihood of a price surge to Fib extension levels and beyond. The analysis suggests that breaking above the 1.0 Fib extension level at $0.569 could open up the opportunity for Dogecoin bulls to challenge its current all-time high.
If Dogecoin follows the trends from previous cycles, it could potentially surpass the 1.618 Fibonacci extension level and reach around $2.28. From there, the price could continue to climb to higher milestones. The cyclical nature of Dogecoin’s price movements has been a defining feature of its market behavior, indicating the potential for further price increases in the future.
