The entire cryptocurrency market has been hit by a notable drop over the past 24 hours, led by Bitcoin falling back below the $100,000 price level. Dogecoin was not left out of this drop, which caused its price to plummet almost 15% and finally reach less than $0.31. However, technical analysis suggests that this price drop is very natural in Dogecoin’s current trajectory. This technical analysis offers a silver lining for Dogecoin enthusiasts as it frames the pullback as a natural phenomenon within the broader ongoing bull cycle.
Weekly Golden Cross and Its Implications for Dogecoin Price
Crypto analyst Kevin (Kev_Capital_TA) took to social media platform to highlight the meaning of Dogecoin’s weekly golden cross amid the current market decline. According to Kevin, Dogecoin experienced a weekly golden cross at the beginning of Novembercoinciding with the American electoral period. Historically, these technical indicators indicate strong bullish momentum. However, Kevin noted that the current pullback aligns with past patterns where Dogecoin saw significant corrections after golden crosses.
He pointed out that In previous cycles, Dogecoin faced three separate 50% corrections on its way to concluding at the top of the cycle. This historical behavior provides context for the recent drop to $0.31which, according to Kevin, is a typical bull market pullback. He highlighted that this type of decline is not only expected but also essential to maintain the bullish structure of the market.
Support Levels and the Golden Pocket Zone
Kevin’s technical analysis takes a deeper look at key Dogecoin support levels that could determine the meme coin’s next move. To obtain these support levels, he described the macrostructured support zone and the gold stock market, which is a Fibonacci retracement zone widely regarded as a strong support area. According to their assessment, a 45% correction from Dogecoin’s recent high would align with these levels and could set the stage for a resumption of the uptrend.
With this in mind, Dogecoin’s recent price high is around $0.48, a price it reached in early December. If Dogecoin takes advantage of this golden pocket zone without closing below the $0.26 level on a weekly basis, this should be enough to keep the bullish market structure intact. However, breaking below the $0.26 support could spell trouble for Dogecoin and cause a change in its price trajectory in the broader trend.
At the time of writing, Dogecoin is trading at $0.3179, which is a sharp drop of 12% in the last 24 hours and an even more significant drop of 22% in the last seven days. This recent drop puts Dogecoin at its lowest level since early November, surpassing the $0.35 threshold for the first time in over a month. However, the $0.26 support level will remain a focus to determine if Dogecoin’s bull run is still valid.
Fountain: NewsBTC.com
