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The Dogecoin price is facing significant bearish pressure, declining by over 12% this past week, as it struggles to find strong support. The recent market turbulence has left analysts questioning whether this downtrend will continue. Notably, a crypto market expert has weighed in on both fair and optimistic End-of-the-Year (EOY) targets for Dogecoin, offering insights into where the leading meme coin might be headed in this bull cycle.
Dogecoin Price End Of The Year Targets
Dogecoin has sparked concern amongst the broader crypto market following its recent pullback from previous highs. Despite sitting at a low of $0.19, a new technical analysis by pseudonymous TradingView crypto expert TradingShot has forecasted a bullish fair value and optimistic end-of-year target for Dogecoin.
The analyst offers a different perspective on Dogecoin’s ongoing downtrend—-one that suggests that the price dip could mark the beginning of a final bullish leg of the current cycle. According to the corresponding chart, Dogecoin has respected a long-standing Fibonacci Channel Up structure, bouncing precisely from its 1W MA200, which acted as the cycle bottom in early April. Notably, the price has since rebounded and is now consolidating around the 1W MA50, signaling a potential run to new highs.
Source: TradingShot on Tradingview
TradingShot notes that Dogecoin’s current price behavior remains consistent with past market cycles, where, after testing the MA200, the meme coin began a sustained rally. The Channel Up structure has also historically guided the altcoin’s price movements, with major cycle tops coinciding with Fibonacci Extension levels.
Based on the TradingView expert’s chart, the 2021 bull run broke above the 1.5 Fibonacci level, showing an uncommon deviation from the channel. For the current cycle, the chart highlights two key end-of-the-year targets. The fair value is set at $1.00, aligning with the 1.0 Fibonacci Extension and the MMB 3SD above. The analyst has also forecasted an optimistic target at $3.50, coinciding with the horizontal 1.618 Fibonacci level, which was previously reached during the January 2018 cycle top and exceeded during the May 2021 peak.
Golden Cross And MMB Trends Support DOGE EOY Forecast
TradingShot’s end-of-year bull case for Dogecoin is further reinforced by the formation of a 1W Golden Cross on its price chart. Historically, this technical pattern has marked the beginning of explosive price increases in not just DOGE but other cryptocurrencies in the market.
Now incorporating the Mayer Multiple Bands (MMB), the TradingView analyst points out that in the final year of each bull cycle, after the formation of the 1W Golden Cross, the DOGE price has consistently reached the MMB 2SD above first and then climbed to the MMB 3SD above. Currently, Dogecoin has already touched the MMB 2SD but has yet to test the 3SD, indicating untapped upside potential.
DOGE trading at $0.19 on the 1D chart | Source: DOGEUSDT on Tradingview.com
Featured image from Getty Images, chart from Tradingview.com
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