Dogecoin has plunged violently over the previous 24 hours, shedding a big chunk of its worth in a brutal correction throughout all the crypto market. What seemed like a maintain above $0.25 was a quick breakdown that dragged the Dogecoin worth to as little as $0.148 inside 24 hours.
Nonetheless, technical evaluation from crypto analyst Kaleo exhibits Dogecoin is able to hit new all-time highs. In a put up on X, he doubled down on a remarkably bullish prediction, stating that $6.90 is a “magnet” for Dogecoin.
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Dogecoin Chart Tells The Story
In his put up on the social media platform X, Kaleo famous how members of the crypto neighborhood are more and more waking as much as see how primed Dogecoin is to achieve increased ranges. The chart accompanying Kaleo’s put up exhibits the historic sample that Dogecoin has adopted after earlier Bitcoin halvings.
Every halving has at all times been adopted by years of large upside strikes in Dogecoin’s worth, with the meme coin breaking out of long-term descending resistance traces to document exponential features. Examples proven on this chart are the 2017 and 2021 explosive worth surges.
Kaleo recommended that the present market part mirrors the identical construction seen simply earlier than the 2021 bull run, when Dogecoin broke above a key lower-high resistance from its earlier all-time excessive. This second is illustrated on the chart with the label “We’re right here.”
Dogecoin Value Chart. Supply: @CryptoKaleo on X
The $6.90 Magnet: Kaleo’s Logic Behind The Forecast
Kaleo acknowledged that the projection of a $6.9 Dogecoin worth goal would possibly sound a bit too bullish, however his logic is predicated on the logic of market cap math. In his put up, he defined that his projection for Bitcoin this cycle is to surpass $500,000. If Bitcoin surpasses $500,000 as anticipated, it might translate to a $10 trillion market capitalization.
This sheer quantity of influx would move into the remainder of the crypto market, and Dogecoin might theoretically attain 10% of Bitcoin’s valuation, simply because it did in the course of the 2021 mania. That ratio implies a $1 trillion market cap for Dogecoin, which is equal to a $6.94 worth per token primarily based on the present circulating provide.
Dogecoin’s latest worth crash has difficult this bullish narrative. As an alternative of confirming an imminent breakout, the meme coin has fallen under the $0.25 help degree. On the time of writing, Dogecoin is buying and selling at $0.1971, down by 21.4% previously 24 hours and having reached an intraday low of $0.1489.
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The breakdown seems just like the type of market-wide liquidity flushes typically seen earlier than main reversals. But, it additionally dangers extending Dogecoin’s bearish construction and delaying any breakout if the value fails to get better shortly. Proper now, restoration above $0.25 is essential for bulls to rebuild bullish momentum.
Featured picture from Unsplash, chart from TradingView
