Since the beginning of June, Dogecoin’s performance has been quite bearish as the largest dog-themed meme coin struggles to undergo a rally and recover the $0.20 price level. DOGE may be witnessing negative movements, but this period could be the calm before the storm, with several predictions about a major rally to uncharted territory emerging.
A Wild Ride For Dogecoin To A New High Ahead
While Dogecoin is struggling to gain upward traction, this waning period could be the foundation to something big in the near future. Javon Marks, a crypto analyst and trader, has delved into the current price action, revealing that DOGE will experience a massive spike in this bull market cycle.
The expert’s prediction is based on previous price trends that preceded a surge to a new all-time high and market top for the meme coin. After a period of prolonged consolidation within the 0 and 1 Fibonacci levels, DOGE appears to be exhibiting a similar trend, increasing its potential to undergo a major upward move this cycle to a new peak.
Considering the reappearance of the bullish price trend, Javon Marks is confident that a similar result may unfold this cycle. This setup implies that Dogecoin has a high likelihood of witnessing a notable run, with the analyst putting his target at the $2.28 level.
It is important to note that the $2.28 target is positioned at the 1.618 Fibonacci level, which DOGE has often met in each bull cycle. During the first bull cycle, the meme coin reached this point and surpassed it. The same was witnessed in the second bull cycle.
Given that Dogecoin has historically surpassed this level, it increases the chances of the trend repeating in this cycle. Thus, Javon Marks anticipates a continuation of the impending surge beyond the $2.28 milestone this bull cycle.
Key Indicators Supporting DOGE’s Bullish Journey
With bullish on-chain signals, technical setups, and improving market dynamics, Dogecoin is likely to rebound soon and rally strongly. João Wedson, a verified author and on-chain analyst, has outlined key indicators that signal robust fundamentals for DOGE to push higher.
The first aspect to consider is the 500-day Aggregated Liquidation Level. During DOGE’s last major drop, this metric shows a huge amount of liquidity, valued at over $380 million, was caught in the $0.50 zone. “Historically, when shorts pile up, DOGE tends to accumulate and surge months later,” he added.
Wedson drew attention to the DOGE/BTC pair, which is now approaching critical support that is comparable to the setup before the 2021 rally, when Dogecoin attracted more interest than BTC. In addition, the Meme Index, which consists of the 16 biggest meme coins, exhibits early indications of recovery following a severe downturn.
Lastly, Wedson has highlighted the notable growth of the overall meme coin market cap this cycle over the 2021 cycle. Despite this rise in market cap, meme coins’ Open Interest and daily volume are valued at $3.2 billion and $12 billion, respectively, which remains low compared to Bitcoin and Ethereum.
Featured image from Getty Images, chart from Tradingview.com
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