Why The Crash To $0.31 Remains Natural
The entire cryptocurrency market has seen significant declines over the past 24 hours, with Bitcoin price once again falling below $100,000. Dogecoin is not left out either Its price plummeted nearly 15%, eventually falling below $0.31. However, technical analysis suggests that this price decline is very natural given Dogecoin’s current trajectory. This technical analysis offers a glimmer of hope for Dogecoin enthusiasts, as it sees pullbacks as a natural occurrence within the broader bull cycle.
Weekly Golden Cross and its Impact on Dogecoin Price
Cryptocurrency analyst Kevin (Kev_Capital_TA) follows social media platform X to highlight the significance Dogecoin’s weekly golden cross amid ongoing market downturn. According to Kevin, Dogecoin undergoes weekly golden cross Come back in early November,and U.S. election time. Historically, technical indicators such as these have signaled strong upward momentum. However, Kevin noted that the current pullback is consistent with past patterns, with Dogecoin experiencing a major correction following the golden cross.
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He pointed out In previous cycles, Dogecoin faced three separate 50% corrections on its way to closing the cycle top. This historical act provided Background for the recent drop to $0.31according to Kevin, this is a typical bull market callback. He stressed that this pullback was not only expected but necessary to maintain the bullish structure of the market.
Support levels and golden pocket areas
Kevin’s technical analysis takes a closer look at Dogecoin’s key support level that could determine the meme coin’s next move. To achieve these levels of support, he outlined macro structural support area Golden pockets, which are Fibonacci retracement areas, are widely considered to be strong support areas. According to his assessment, a 45% correction from Dogecoin’s recent highs would be consistent with these levels and could set the stage for a resumption of the uptrend.
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With this in mind, Dogecoin’s recent price high was around $0.48, a price point reached in early December. If Dogecoin enters this golden pocket zone and does not close below $0.26 on a weekly basis, this should be enough to keep the bullish market structure intact. However, a break below the $0.26 support could spell trouble for Dogecoin and cause its price trajectory to change within the broader trend.
As of this writing, Dogecoin is trading at $0.3179, down a steep 12% in the past 24 hours and 22% in the past seven days. The latest decline took Dogecoin to its lowest level since early November, falling below the $0.35 mark for the first time in more than a month. Still, support at $0.26 will be the deciding factor if The Dogecoin bull run is still valid.
Featured image created using Dall.E, chart from Tradingview.com
