A new technical analysis by crypto analysts suggests that the recent Dogecoin price drop may be imminent.
The new technology analysis by encryption analysts suggests that the recent decline in Dogecoin prices may be coming to an end. Analysts predict that this top tier meme coin is preparing to rally at a price of $0.5. Although Doge's long-term prospects seem promising, the final obstacle facing meme coins may delay their rise.
Dogecoin price pattern signal is about to surge
According to CasAb é, an encryption analyst at X (formerly Twitter), Dogecoin is a perfect circular bottom pattern on the annual chart, indicating potential for emb up to $0.55. The textbook model is a technical indicator that may initiate a price reversal after a prolonged downward trend.
The circular bottom pattern indicates that although dogs have gradually established power prices and dropped to new lows recently. The analyst shared a price chart depicting the price changes of meme coins from 2022 to the present. The yellow trend line at the top of the chart represents the resistance region at approximately $0.4 and $0.55. Doge had previously tested the resistance area, but faced rejection and lowered its price to the current low point.
DOGE is about to recycle $0.5 Mark | Source: cas abbe on x
Abu Bei's chart also highlights the momentum of Dogecoin's Relative Strength Index (RSI). The weekly RSI is approaching the support trend line of 40 to 48.98 levels. From a historical perspective, when RSI reaches this level, Doge tends to reverse and move higher. Based on the analyst's prediction of a circular bottom pattern, the price may soon reach as high as $0.55.
Although this goal will mark a significant milestone for Dogecoin, it is still below its ATH's $0.65 bull market of 2021. Other encryption members expressed excitement about Abb è's prediction, predicting Doge's higher target to be $1.
In addition, commentators such as Dean Chapman have highlighted the potential impact of Dogecoin ETF on the future prospects of meme coins. Dogecoin ETF files with news spread throughout the cryptocurrency space, and Doge may experience a more substantial gathering similar to Bitcoin's Speckle Bitcoin ETF FOMO
The last drop before the rally?
Despite the optimistic outlook facing an eventual decline before the expected rally. The technical indicators on the chart, especially Dogecoin's RSI and Moving Average Fusion Average (MACD), suggest a short-term correction
Abb è predicts that Dogecoin will initially decline to the range of $0.19 to $0.20 before establishing a solid foundation for price reversal. If the meme coin can successfully occupy this support range and break through the resistance level, Doge may gather at the expected $0.55 target. This will increase the current market value by 120%.