by Nayab Fatima
According to market analyst Paul (Zig_ZagTrades) Dogecoin is likely to fall dramatically before restarting its growth. Paul demonstrates his X evaluation through a technical chart which indicates that DOGE may decrease to $0.12 during its final correction phase before trying to improve.
The evaluation uses Elliott Wave theory which tracks price actions through distinct movement patterns for technical analysis. The 1-day DOGE chart shows a three-part (A)-(B)-(C) corrective pattern where Dogecoin currently moves through the last piece of Wave 2. After reaching a peak at Wave 1 Dogecoin followed a five-subwave descent before its latest price fall.
Dogecoin’s Critical Price Targets
Based on important Fibonacci levels Paul’s analysis shows DOGE will most probably reach its lowest point between $0.12 and $0.15. Based on Fibonacci levels the price of Dogecoin may reach the 61.8% mark at $0.160257 followed by stops at 78.6% near $0.118726 and 100% at $0.126709.
The levels that Paul points out form the boundaries of his “Golden Zone” where traders watch for market trends to reverse. Current market trends match Paul’s bearish prediction since Dogecoin keeps forming lower tops and bottoms in its price movements. The chart shows sell signals with decreasing prices while volume indicators show strong selling action taking place.
Potential for DOGE Rebound
At the end of January a strong resistance level emerged through the Ichimoku Cloud technical indicator which shows that Dogecoin stays in its current corrective movement. Paul predicts a market turnaround for DOGE when it reaches the GZ support level even though market conditions seem negative.
His notes show that when Dogecoin hits expected support levels it might initiate a positive rally marked by a bullish cycle from 1 to 5. According to the analyst the market will probably bounce back when DOGE stays above $0.12 yet if this level cannot hold longer drops may push the recovery farther into the future.
Paul expects a strong end to selling after which Dogecoin will establish its new market floor. Based on his analysis the analyst expects Dogecoin to reach a bottom after completing its wave C/2 movement within the GZ structure. The analyst believes how buyers react to major Fibonacci points will show if DOGE has bottomed out for the future.
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