Dogecoin Could Soon Drop 50%: But Here's Why You Should Still Be Optimistic

When the price of Dogecoin ($DOGE) stabilizes above $0.40, investors are considering whether the market can reach new highs or will experience a deeper retreat. Dogecoin has come very close to $0.50 twice in the past two weeks. However, the double top may have formed, indicating that the bearish camp may soon regain control of this market. Other recent technical developments are also providing warning signs. $DOGE has also broken the short-term trend this week and slipped below its 21-day moving average (DMA), indicating weakening price momentum. If the support level in the $0.33-35 area as a high at the end of 2021 is broken, the price could suddenly drop 50% to a high at the beginning of 2024 in the $0.20 area.

Prospects for Dogecoin price - Will the buying side buy in when the price drops? However, in the current context of the cryptocurrency market's price surge, it is difficult to bet on such a deep retreat right now. The statements of the new U.S. President Donald Trump remain optimistic about cryptocurrencies. People are still very hopeful that we are on the threshold of a new golden age for the US cryptocurrency industry and the cryptocurrency market in general. And $DOGE still maintains a strong and special position as the Department of Government Efficiency (DOGE) is about to continue to attract a lot of attention on social media and traditional media. This ensures that $DOGE will maintain a significant 'popularity' ratio as the current cryptocurrency market continues to boom. All of that suggests that this price drop may only occur in the short term and Dogecoin's price could continue to rise to the $1 level in the coming months. Gold holders should enhance their management skills and avoid being shaken by any short-term market downturns. How high can the $DOGE price go? The price prospects of Dogecoin are very promising in the coming months, with a $1 level certainly being a reasonable target. But how far can Dogecoin's price go from here? Yes, Dogecoin is said to have gone through three market cycles since its inception in 2014, and these cycles may provide a clue. When drawing the Fibonacci extension lines upwards from the previous market low to the previous market high, it can be seen that Dogecoin always exceeds the 4.236 Fibonacci extension level, surpassing this Fibonacci extension level more than 10 times during the price increase in 2021.

The Fibonacci 4.236 expansion from the market's low in 2022 to the high in 2021 suggests that Dogecoin will reach at least $3 per token in this cycle. But as history has shown, Dogecoin often surpasses this level. In that context, it would not be unreasonable to expect Dogecoin's price to be $10 in this cycle. Of course, that means the market capitalization will rise to trillions of dollars, a figure that may be a bit excessive. But Dogecoin can certainly increase tenfold from its current level to reach a market capitalization of hundreds of billions of dollars. DYOR! #Write2Win #Write&Earn