Dogecoin (DOGE) has recently seen a major recovery from a critical accumulation zone, which one crypto analyst believes could set the stage for a stronger rally to or above $1. The huge price increase comes afterwards months of continued declinesin which the dog-themed meme coin has failed to break resistance amid volatility and continued market sell-off.
Dogecoin recovers 46% of the accumulation zone
Market analyst Crypto Patel has done that issued a new assessment of Dogecoin’s price behavior, pointing out a main accumulation zone that has led to a remarkable recovery of the meme coin. The analyst highlighted a significant shift in Dogecoin’s momentum and price direction after it rose around 46.94% against a strong support area and accumulation zone near $0.0375. The jump included a recent daily increase of 8.57%, pushing DOGE towards $0.113.
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Crypto Patel has said that short-term traders may consider taking profits at the current high levels. In contrast, long-term traders are encouraged to view any decline from $0.113 to the $0.06 to $0.08 range as a gradual development. accumulation possibilitywith expectations that the meme coin’s next bullish targets will extend to $1 and $2.
The accumulation zone, highlighted in green on the analyst chart, represents a multi-year base that has held since previous cycles, with Dogecoin price respecting this as support on a higher time frame. Crypto Patel noted that DOGE previously recorded two major outbreaks before reaching this zone. The first outbreak occurred at the lower limit of a descending channel between points 1 and 2 on the chart, followed by a second breakout from a later consolidation phase that pushed prices higher.
Following these moves, Dogecoin price retreated and retested key levels before settling into the current accumulation zone. The meme coin is now visible renewed bullish momentum after months of decline, with price action indicating a move to higher levels.
Fibonacci extensions and measured move projections further indicate the likelihood of significant upside potential, with one target on the chart pointing to $0.567, representing a potential rally of 409%. Another target suggests an even higher price move towards $2 and possibly $4 if the bullish momentum continues.
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Although Dogecoin recovered to $0.11, the price has since fallen to $0.10. CoinMarketCap’s daily chart shows that DOGE is down more than 11% in the past 24 hours.
Analyst points out possible invalidity level
In his chart, Crypto Patel highlighted a potential invalid area and warned that Dogecoin could retreat and advance if this is exceeded. its previous downward trend. The void level is near $0.056, just below the accumulation zone. The analyst previously noted that DOGE price could still return to the $0.06 range despite the recent recovery, suggesting that a weekly close below this area could weaken the meme coin’s price. broader macro bullish structure.
Featured image from Pixabay, chart from Tradingview.com