The entire crypto market has been full of a particular decline in the last 24 hours, led by Bitcoin breaking below the $100,000 price level again. Dogecoin was not left out of this decline, which saw its price drop by nearly 15% and eventually reach below $0.31. However, technical analysis suggests that this price decline is very natural in Dogecoin's current path. This technical analysis offers a silver lining for Dogecoin enthusiasts, as it frames the pullback as a natural phenomenon within the broader ongoing bull cycle.
Weekly Golden Cross and its implications for Dogecoin price
Crypto analyst Kevin (Kev_Capital_TA) took to the social media platform X to indicate importance of Dogecoin's weekly gold cross amid the market decline. According to Kevin, Dogecoin experienced a weekly golden cross back in early Novemberat the same time US election time. Historically, such technical indicators indicate a strong bullish trend to the upside. However, Kevin noted that the current pullback is in line with past patterns where Dogecoin has seen large corrections following golden crosses.
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He pointed that out in previous cycles, Dogecoin faced three separate 50% corrections on its way to ending at the top of the cycle. This historical behavior gives context for the recent crash to $0.31which, according to Kevin, is a typical bull market pullback. He emphasized that this type of movement is not only expected but is also necessary to maintain the bullish structure of the market.
Support Levels And The Gold Pocket Zone
Kevin's technical analysis looks into key Dogecoin support levels that could determine the next meme bottom move. To get these levels of support, he explained the macrostructured support field and the golden pocket, which is a Fibonacci retracement area widely regarded as a strong support area. Based on his assessment, a 45% correction from Dogecoin's recent high would align with these levels and could set the stage for a resumption of the rise.
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With that in mind, Dogecoin's recent high price is just around $0.48, a price point it achieved in early December. If Dogecoin makes it into this golden pocket area without closing below the $0.26 weekly level, this should be enough to keep the bullish market structure intact. However, a break below support at $0.26 could spell trouble for Dogecoin, and a change in its price path in the broader trend.
At the time of writing, Dogecoin is trading at $0.3179, marking a significant decline of 12% in the past 24 hours and an even more significant drop of 22% over the past seven days. This recent decline puts Dogecoin at its lowest level since early November, breaking below the $0.35 level for the first time in over a month. Nevertheless, the $0.26 support level will remain the focus in determining whether to The Dogecoin bull run is still valid.
Featured image created by Dall.E, chart from Tradingview.com
