Dogecoin Price Could Rally 570% To $2.28 If It Moves Above This Essential Fibonacci Extension Level

The Dogecoin price is currently trading inside a bearish setup because it continues to undergo correction following a remarkable price surge previously two months. Nonetheless, technical evaluation suggests that the leading meme coin remains to be trading in a bullish setup on the larger timeframe.

In a technical evaluation of Dogecoin’s price movement on the 2-week candlestick chart, crypto analyst Javon Marks noted a looming 570% rally for DOGE, which is contingent upon a break above the 1.0 Fibonacci extension level.

Fibonacci Extension Indicates Bullish Momentum

In keeping with a Dogecoin technical evaluation posted on social media platform X by Javon Marks, the Dogecoin price is currently within the midst of its third major bullish cycle since its creation. Drawing parallels from Dogecoin’s historical price motion during its previous two bullish cycles, Marks suggests that the cryptocurrency is well-positioned to go on a 570% increase from its current price.

Using the Fibonacci extension indicator, he pinpointed the 1.618 level as the primary necessary bullish goal this cycle. It is because the last two cycles have been highlighted by a break above this Fib level when projected from the low of the preceding bearish phase. As such, Dogecoin has surpassed this level during each of its past bull runs.

In keeping with the chart below, the bearish phases have been highlighted by Dogecoin bouncing off a comparatively constant support level. This price motion is then followed by strong bullish candles that break above the previous cycle’s all-time high.

The present (third) Dogecoin cycle is currently playing out the identical way. Nevertheless, the meme coin seems to have faced a notable resistance level on its method to reclaiming the previous cycle’s all-time high of $0.7316. Particularly, the Dogecoin price encountered multiple rejections around $0.475 in early December, which has culminated in a correction path since then.

On the time of writing, Dogecoin is trading at $0.316, which translates to a 50% price decline since December 8. Moreover, data from Coinmarketcap shows that the leading meme coin is currently down by 12.5% previously seven days. Notwithstanding, crypto analyst Javon Marks suggests that history hasn’t modified and still points to a reasonably high likeliness of a price run to Fib extension levels to recent all-time highs.

Source: X

Evaluation Puts Dogecoin Price Beyond $2.8

Dogecoin’s cyclical price movements have had a defining feature of its market behavior, which is a successive break above the 1.0 and 1.618 Fib extension levels from the bearish market low. Immediately, the bearish momentum hinges on a break above an initial break above the 1.0 Fib extension level, which is situated around $0.569. Breaking above this level would open up the stage for Dogecoin bulls to challenge its current all-time high.

If the present cycle follows the trends from the previous cycles, Dogecoin could break past the 1.618 Fibonacci extension, which might put it at the very least around $2.28. From here, the Dogecoin price could proceed on a bullish momentum and move into other price milestones.