The price of the meme-inspired cryptocurrency Dogecoin ($DOGE) has plunged by more than 15.8% over the last week amid a wider cryptocurrency market correction that saw the price of the flagship cryptocurrency Bitcoin drop to $65,000. DOGE’s price, according to one analyst, is now at a “generational bottom.”
According to Johnny Brah, a crypto analyst writing on TradingView, there’s historical significance on this pattern, as DOGE has responded favorably to similar formations in the past.
Drawing on past bull runs, Brah highlights a reset in the Stochastic Relative Strength Index (RSI) for Dogecoin, a technical indicator developed to take advantage of the Stochastic oscillator and the Relative Strength Index. This reset is particularly interesting because the previous instance marked a bottom that was followed by a parabolic price surge.
For context, the last time this occurred was in 2021 and led to a rally that saw the price of the meme-inspired cryptocurrency DOGE skyrocketed from around $0.003 to an all-time high of $0.7 in a mere five months.
DOGE has since fallen and struggled to recover, failing to breach the $0.17 mark over the last few weeks while the wider cryptocurrency market remains range-bound after Bitcoin failed to breach its all-time high set earlier this year.
Should the analyst’s scenario unfold, he anticipates DOGE not only clearing $1 but potentially exceeding $10 and even reaching the $20 mark. The most optimistic prediction places the price at $24, representing a staggering 16,500% increase from current levels.
As reported Altcoin Sherpa, a well-known crypto analyst, recently shared a detailed post on the social media platform X (formerly known as Twitter), predicting a significant upward movement for Dogecoin.
He suggested that DOGE reaching $0.40 is one of the safest trades in the current market cycle, providing a compelling analysis of the factors supporting this forecast.
Featured image via Unsplash.
