A notable market analyst has looked past the short-term Dogecoin price correction, sharing an ambitious target following a bounce from a crucial support zone.
While Bitcoin has ranged above the psychological $100,000 level after its January 20 push to a new all-time high, altcoins like Dogecoin have retraced considerably. The doggy-themed meme coin has lost the bullish traction that spurred the wild run in Q4 2024.
For context, Dogecoin surged over 160% in November, continuing the run in early December to a multi-year high of $0.4846. However, the largest meme coin by market cap has capsized over 31% since then, with Donald Trump’s inauguration and the official launch of the Department of Government Efficiency (D.O.G.E.) unable to change the trend.
Meanwhile, a recent analysis has shared insight into Dogecoin’s recent price behavior and what lies ahead for the prominent meme coin.
Correction to Major Support in View
In a recent TradingView analysis, market commentator “MyCryptoParadise” highlighted that Dogecoin’s weekly timeframe suggests it is in a correctional phase. The analyst noted that the predominant southward price action aligns with the asset’s retest of a pivotal support for a sustainable long-term bullish uptrend.
An accompanying chart shows that Dogecoin has a history of retesting supports after a break of structure. For context, the asset retested the support around $0.06151 in June 2023 after a breakout to $0.1515 in October 2022.
Dogecoin also pulled off a similar feat in August after a break of structure three months before then. The meme coin retested the support around $0.0880 with the correction.
As a result, “MyCryptoParadise” suggested that Dogecoin will retest the areas from which it broke out in November. Dogecoin resumed its bullish outburst from the support at $0.1512 before breaking to the December 8 high, and the analyst asserts that it will retrace to the demand zone before any other sustainable price upswing.
Dogecoin’s Next Target After Retest
Meanwhile, the analyst placed an ambitious target for Dogecoin upon a successful retest. Per the commentary, it will surge over 12,611% to an audacious peak of $42 upon a bounce from the support zone.
Moreover, he did not set a timeline for the lofty target. However, he urged enthusiasts to buy the dip and monitor overall market sentiments for confirmation of a reversal from the support or a continuation of the dip.
Interestingly, “MyCryptoParadise” joins a list of other analysts to place an ambitious target for the meme coin. For perspective, prominent market speculator Ali Martinez predicted that Dogecoin would rise to $23, citing a continuation of its cyclical fractal pattern.
In the meantime, Dogecoin trades at $0.3321, up almost 2% in the past day.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Source: Dogecoin to $42: Analyst Sets Target for Bounce from Crucial Support Zone
