Dogecoin price sank on Monday, reaching its lowest level since November last year. This decline was part of the ongoing crypto and stock market sell-off. While the DOGE price crash may continue, some analysts believe that it has now bottomed, opening a chance for a parabolic move ahead.
Crypto Analyst Sees Dogecoin Price Being in “Final Capitulation”
Dogecoin price dropped from a high of $0.4835 on December 8 to the current $0.2572, a 50% crash. In an X post, Trader Tardigrade, a popular crypto analyst with over 70,000 followers, noted that it had moved to the final capitulation.
He used a three-day chart and pointed to the capitulation that happened in August when it dropped to $0.08080. As such, he expects that the Dogecoin price will surge to the key resistance level at $0.85, up by 230% from the current level.
Dogecoin Forecast Chart
In another X post, Tardigrade noted that the coin has had similar reversals in the past. He identified that the coin dropped by 60% in 2016 and surged by over 9,221% in the next few years. The coin also had a 56% drop in 2020 and then soared by over 30,000% by 2021.
Dogecoin Price Forecast
DOGE Price Analysis: Technicals Points to a Rebound
The weekly chart peaked at $0.4832 in December and then tumbled to a low of $0.2017 on Monday as sentiment worsened. It moved slightly below the key support level at $0.2295, its highest swing in March last year.
Dogecoin has remained slightly above the 50-week Exponential Moving Average (EMA), a sign that bulls are in control for now. It also dropped to the major S/R pivot point of the Murrey Math Lines at $0.2017. This is a crucial point where an asset tends to stage a reversal after falling sharply.
There are also signs that the value of DOGE has formed a falling wedge pattern, a highly bullish pattern. Dogecoin price is also forming a small hammer pattern, a popular bullish reversal sign.
Dogecoin Price Chart
Dogecoin Target Prices
Dogecoin will likely rebound in the next few weeks, with the next point to watch being the ultimate resistance of $0.400. This price is about 53% above the current level.
However, the bullish DOGE price forecast will become invalid if it drops below the major S&R pivot point at $0.2017, its lowest level this week. A drop below that level will point to more downside to the strong, pivot, reverse at $0.09766.
The post Is Dogecoin Price Ready to Rise as Expert Hails “Final” Capitulation? appeared first on CoinGape.
