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Highlights
- Dogecoin price has crashed by double digits from its highest level this year.
- Its price action mirrors what happened between 2018 and 2021.
- Its numerous chart patterns on the weekly chart points to more gains to $1.
Dogecoin price has lost momentum and dropped to its lowest level in two weeks. This decline happened as most cryptocurrencies and stocks plunged as investors turned on the risk-off sentiment after DeepSeek’s success and the upcoming Fed decision.
Dogecoin’s crash coincided with that of other popular coins like Bitcoin, Ethereum, and Solana. The main driver was the success of DeepSeek, a Chinese ChatGPT rival that has become highly popular in the past few days. The app’s success may have a big impact on popular AI stocks like NVIDIA and AMD. Cryptocurrency prices often mirror the performance of stocks.
The DOGE price crash was also because of the upcoming Federal Reserve interest rate decision on Wednesday. Still, some technicals point to a potential DOGE rally to $1.
Dogecoin Price Fractals Point To A Surge to $1
DOGE price was trading at $0.3200 on Monday, meaning that it needs to surge by 210% to get to $1. Such a big price action is possible in the crypto industry. For example, it has jumped by over 460% from its lowest level in 2023.
Mister Crypto, a popular crypto analyst, noted that Dogecoin’s price action this year mirrored its big breakout in 2021. He noted that the coin initially peaked at $0.015 in 2018 and then retested it 2021 and continued its strong rally that pushed it to a record high of $0.5698.
Using the same approach, he expects DOGE to surpass the all-time high and potentially retest $1.
Dogecoin Price Flashes Key Buy Signal Before Rallying to $1
Ali Martinez, another popular crypto analyst, noted that the DOGE price had flashed a buy signal. He based his argument on the TD Sequential indicator that turned bullish on the daily chart.
The Tom DeMark is a popular technical indicator that helps traders to identify potential areas of trend exhaustion. However, as with all indicators, the TD Sequential one is not always accurate and should be used carefully.
DOGE Price Weekly Chart Points To More Upside
The weekly chart provides a bullish DOGE price forecast. The ongoing pullback is part of the formation of a falling wedge pattern. This pattern has two falling and converging trendlines, which are nearing their tipping point. The wedge is happening after the coin jumped sharply, meaning that it is part of a bullish pennant.
There are also signs that the Dogecoin price is forming a cup-and-handle pattern, with the upper side at $0.7373. It has already completed the rounded bottom and is approaching the higher side. A C&H pattern is a highly bullish sign.
Dogecoin targets
Therefore, the most likely Dogecoin price action is where it rebounds and retests last year’s high of $0.4835. A move above that level will lead to a jump to its 2021 high of $0.7373, followed by $1.
On the other hand, a drop below the psychological level at $0.25 will cancel the wedge and the bullish pennant patterns.
Frequently Asked Questions (FAQs)
1. Can Dogecoin price rally to $1 this year?
2. Which bullish patterns has DOGE formed?
3. Why is DOGE price falling?
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