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02/06 17:05

Dogecoin to $42 Analysts Predict Bounce from Key

Dogecoin to $42

Analysts Predict Bounce from Key Support Area

Ignoring Dogecoin’s short-term price correction, a prominent market analyst has shared an ambitious target after a bounce from a key support area.

While Bitcoin has broken the psychological $100,000 level after its all-time high on January 20, altcoins like Dogecoin have seen a significant correction. The dog-themed meme coin has lost the bullish momentum that sparked a wild rally in Q4 2024.

In comparison, Dogecoin surged more than 160% in November and continued its gains in early December, hitting a multi-year high of $0.4846.  However, since then, the largest meme coin by market cap has fallen more than 31%, a trend that neither Donald Trump’s inauguration nor the formal creation of the Department of Government Efficiency (DOGE) have been able to reverse.

In the meantime, a recent analysis provides insight into Dogecoin’s recent price action and the future prospects of the famous meme coin.

Adjustments at Key Support Levels

In a recent analysis on TradingView, market commentator MyCryptoParadise highlighted that Dogecoin’s weekly chart suggests that it is in a correction phase. The analyst noted that the significant southward price move is consistent with the asset retesting a key support in a sustained long-term bullish trend.

The accompanying chart shows that Dogecoin has a history of retesting support after structural breakdowns.  For context, the asset retested support around $0.06151 in June 2023 after breaking above $0.1515 in October 2022.

Dogecoin also achieved a similar result in August after a structural breakout three months ago.  Following the correction, the Meme coin retested support around $0.0880.

MyCryptoParadise therefore suggests that Dogecoin will retest the territory it broke in November.  Dogecoin resumed its bullish surge from support at $0.1512 before breaking the high on December 8, with analysts arguing that Dogecoin will return to demand zones before any other sustained price gains.

Dogecoin’s Next Target After Retest

Meanwhile, analysts have set an ambitious target for Dogecoin after a successful retest.  According to the comments, once it bounces off the support zone, it will rally more than 12,611% to a bold peak of $42.

And he hasn’t set any timeframe for reaching that lofty target. However, he is looking to buy dips and watch overall market sentiment for confirmation of a support reversal or further declines.

Interestingly, “MyCryptoParadise” joins other analysts in setting ambitious targets for the meme coin. Longer term, renowned market speculator Ali Martinez predicts Dogecoin will rise to $23, citing a continuation of the cyclical fractal pattern.

Meanwhile, Dogecoin is trading at $0.3321, up nearly 2% in the last day.

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