Crypto meme coin faces potential downturn after recent surge.
Dogecoin, the popular cryptocurrency that started as an internet meme, has seen a wild ride in recent months. After a significant surge in value, a leading market analyst is warning that the meme coin is now poised for a "steep price correction."
Behdark, a well-known crypto analyst, recently shared his insights on TradingView, highlighting Dogecoin's recent price movements and potential future trajectory. According to Behdark, Dogecoin has entered an ABC correction phase, following its peak price of $0.41 on December 11, 2024. This correction phase suggests that the cryptocurrency's value is likely to decline in the short term.
Behdark explained that Dogecoin is currently in wave B of the correction, which is forming as a diametric pattern. However, he anticipates a brief rebound rally during this wave, potentially reaching the $0.40 resistance mark by the end of January. This "yellow zone," as Behdark calls it, is significant due to the high concentration of liquidity at this level.
Despite the potential for a short-term rally, Behdark believes that a massive pullback is inevitable after Dogecoin reaches the $0.40 resistance mark. He predicts that a bearish wave C will follow, driving prices down to the "yellow zone" between $0.24 and $0.27.
Behdark's analysis is based on a broader, multi-year bullish phase for Dogecoin, characterized by a diametric or symmetrical pattern. He noted that wave E of this pattern is complete, signaling the start of wave F, a bearish phase that could last between 196 and 347 days.
While Behdark's outlook suggests a significant correction for Dogecoin, it's important to remember that the cryptocurrency market is highly volatile and unpredictable. Other analysts have offered different perspectives, with some predicting a potential breakout for Dogecoin if it can surpass certain resistance levels.
Ultimately, the future of Dogecoin remains uncertain. Investors should carefully consider the risks and potential rewards before making any decisions. It's also crucial to conduct thorough research and consult with financial professionals before investing in any cryptocurrency.