Is Dogecoin’s Price Downward Trend Here to Stay? Analyst Reveals Hopeful Year-End Projections

The Dogecoin value is experiencing notable bearish pressure, dropping by over 12% this week, as it struggles to establish robust support. The recent market volatility has left analysts wondering if this decline will persist. Importantly, a cryptocurrency market specialist has provided insights on both realistic and hopeful End-of-the-Year (EOY) goals for Dogecoin, indicating where the leading meme coin might progress in this bull cycle.

Dogecoin Price End Of The Year Objectives

Dogecoin has raised alarms within the larger cryptocurrency market following its recent drop from prior peaks. Although currently at a low of $0.19, a new technical evaluation by the pseudonymous TradingView crypto analyst TradingShot has predicted a hopeful fair value and optimistic end-of-year goal for Dogecoin.

The analyst presents an alternative view on Dogecoin’s current downtrend—-indicating that the price decrease could signify the onset of a final bullish leg of the current cycle. According to the corresponding graph, Dogecoin has adhered to a long-established Fibonacci Channel Up structure, rebounding accurately from its 1W MA200, which served as the cycle bottom in early April. Notably, the price has since recovered and is currently stabilizing around the 1W MA50, suggesting a potential surge to new peaks.

TradingShot observes that Dogecoin’s current pricing pattern aligns with historical market cycles, where, after touching the MA200, the meme coin initiated a prolonged rally. The Channel Up structure has also historically influenced the altcoin’s price trends, with significant cycle peaks coinciding with Fibonacci Extension levels.

Based on the TradingView expert’s analysis, the 2021 bull surge surpassed the 1.5 Fibonacci mark, indicating a rare deviation from the channel. For the ongoing cycle, the chart identifies two essential end-of-the-year goals. The fair value is pegged at $1.00, corresponding with the 1.0 Fibonacci Extension and the MMB 3SD above. The analyst has also projected a hopeful target at $3.50, matching the horizontal 1.618 Fibonacci level, previously attained during the January 2018 cycle peak and exceeded in the May 2021 high.

Golden Cross And MMB Trends Bolster DOGE EOY Outlook

TradingShot’s end-of-year bullish case for Dogecoin is further emphasized by the emergence of a 1W Golden Cross on its price chart. Historically, this technical formation has signified the start of explosive price escalations not only in DOGE but also in other cryptocurrencies within the market.

Now integrating the Mayer Multiple Bands (MMB), the TradingView analyst notes that in the concluding year of each bull cycle, following the creation of the 1W Golden Cross, the DOGE price has consistently reached the MMB 2SD initially and then ascended to the MMB 3SD. Currently, Dogecoin has already approached the MMB 2SD but has not yet tested the 3SD, indicating untapped upside potential.

Featured image from Getty Images, chart from Tradingview.com

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