Dog-themed cryptocurrency Dogecoin DOGE/USD may be encountering a corrective phase, but analysts were hopeful of significant upside

Cryptocurrency trader Javon Marks said that dog-themed cryptocurrency Dogecoin (CRYPTO: DOGE) may be encountering a corrective phase, but he is hopeful of significant upside in the ongoing cycle.

What Happened: Javon Marks, a widely followed chartist, shared their analysis of Dogecoin’s potential trajectory on Sunday. He said, “Dogecoin, by its previous cycles, has a high likeliness to make a run to and above $2.28.” Should the prediction come true, it’d mean a whopping 12x upside from the current price.

The analyst said that these levels act as the 1.618 Fibonacci Level, which DOGE managed to hit and exceed in previous bull cycles, making the chances of it happening again in the current cycle a bit higher.

Fibonacci retracement is a technical analysis tool that uses ratios derived from the Fibonacci sequence to determine probable support and resistance levels. These are then used to predict reversals or continuations. The 1.618 level, often referred to as the “golden ratio,” is particularly significant.

In the analysis shared on X, formerly Twitter, Marks also noted that a break and close above $1.15 could be crucial for setting the stage for further upside in the cryptocurrency.

Dogecoin

Credit: zernl via Pixabay

What Else Is Important: Asghar noted that DOGE’s structure remained “strong” within an ascending broadening wedge, setting a price target of as much as $3.8.

The ascending broadening wedge is a bearish reversal pattern, as part of which price makes higher highs and higher lows before a downward breakout.

However, the cryptocurrency broke out to the upside, which could be setting the stage for a substantial rally in the coming weeks.

"The structure remains strong as we broke out to the upside here setting the final leg to 3.80 as the pattern target," Asghar said.

Despite the upbeat predictions, both analysts cautioned that the cryptocurrency market is highly volatile, and anything can happen.

It is important to conduct thorough research and due diligence before making any investment decisions.

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