One crypto analyst suggests that Dogecoin has potentially embarked on a sustained bullish rally, poised to propel its price higher. This follows a period where its price dipped below $0.13, only to swiftly rebound above $0.16. What factors are fueling this current upsurge?
Dogecoin Is Set for a Prolonged Uptrend
Crypto analyst Behdark, on the TradingView platform, has presented a compelling analysis that has garnered attention from members of the Dogecoin community. According to Behdark, Dogecoin has entered a bullish rally, supported by several key factors.
The analyst notes that Dogecoin has established robust support just above $0.1, which has consistently cushioned the coin during market downturns, facilitating its rebound. This demand at the $0.1 level ensures that whenever the price experiences a dip, it is promptly rejected to the upside, as evidenced by the recent market crash.
Furthermore, Dogecoin has undergone a prolonged period of correction, which, according to the analyst, signals the onset of a bullish rally. Behdark references the previous correction lasting 900 days and anticipates that the current correction will surpass 500 days in a similar manner.
However, Behdark emphasizes that the commencement of the long-term bullish rally did not occur recently. Instead, it traces back to October 2023 when Dogecoin successfully breached the $0.06 mark. This rally has experienced fluctuations between uptrends and downtrends, ultimately leading to the entry into the next wave, as identified by the analyst.
Thesis Validation for the Analysis
Behdark's analysis includes a clear threshold for invalidating the predicted bullish rally: Dogecoin's price must maintain above $0.08. Falling below this level and closing a daily candle would violate the analysis.
According to Behdark, the Dogecoin price is currently in a D wave following the completion of the C wave after surpassing $0.2. Historically, this D wave has been bullish, often leading to at least a 100% price increase.
In terms of price targets, Behdark sets the initial target at $0.28. Subsequently, a retracement is anticipated back to the $0.16 level, marking the completion of the E and F waves. Once the G wave commences, the analyst foresees the price surging over 100% to $0.38.
At present, Dogecoin is still trading above $0.16, experiencing an 18.6% increase over the past week. It retains its position as the 8th-largest cryptocurrency with a market cap of $24.18 billion.
May 2024, Cryptoniteuae