In the monthly chart released on July 8, cryptocurrency analyst Kevin outlined the long-term bullish argument for Dogecoin (DOGE), pointing to a clear historical pattern that may signal the next important phase of its price movement. The chart's focus is on the 1.618 Fibonacci extension line - used as a key predictive level - and Kevin hinted that this is Dogecoin's next major upward target. According to the chart, this level corresponds to $3.94.
History suggests that Dogecoin will reach $3.94.
Dogecoin's price movement follows an extremely consistent macro pattern across three major market phases. In each phase, Dogecoin formed a clear descending wedge, followed by an impulsive breakout and a parabolic rebound. These structures are marked in yellow on the chart and appeared before the bull markets of 2017 and 2021. The most recent wedge breakout occurred last November, and it is currently being retested.
Kevin marked the two historical Fibonacci extension levels reached after the previous consolidation. Both levels peaked around the 1.618 Fibonacci extension of their respective benchmarks - a common target for long-term bullish trends in technical analysis. In terms of the current structure, this means that Dogecoin's long-term Fibonacci target is close to $3.94, indicating an approximate increase of 2,218% from the current price of about $0.17.
Various indicators further support the view that a long-term foundation has already formed. The RSI on the monthly chart has just reclaimed the neutral zone at 50 and is currently at 50.39, a signal often interpreted as a shift from bearish to bullish. In previous cycles, the monthly RSI has consistently remained above 90. Notably, since mid-2022, the monthly RSI has also been in an upward trend, consistent with the yellow trend line drawn by analysts.
A significant convergence point comes from the Random Relative Strength Index (RSI), which just completed a bottom crossover in the oversold area. The last time this happened was in early 2020, after which Dogecoin saw a parabolic rise. Now, the same dynamic seems to be reappearing, echoing previous cycles.
Also worth noting is that the structural focus of the chart is on the 0.382 Fibonacci retracement support level, currently at $0.13778, from which Dogecoin seems to be bouncing. This aligns with the green super trend support level, indicating that a key local bottom has been found.
While the purple area above $0.50 on the chart is not an official price target, Kevin clarified in response to a community member that they are key resistance areas - intermediate checkpoints before Dogecoin makes a full move toward the ultimate Fibonacci extension. The ranges of these areas are approximately from $1.00 to $1.20 and from $2.30 to $2.50, eventually rising to the range of $3.94.
Kevin emphasized: 'Dogecoin's performance in this cycle, especially compared to other altcoins, is still far from where it should be. This situation will change under the right circumstances.' He further pointed out that Dogecoin has risen tenfold from its bear market low to a local high, but he believes that 'there is still work to be done' when the Federal Reserve's quantitative tightening cycle ends.
This chart and commentary sparked strong reactions in the community. Users like MonetaryRegimee claimed, 'We always reach 1.618,' to which Kevin replied, 'Usually, yes,' further reinforcing his confidence in fractal repetition. Others described the current price movement as 'the calm before the storm.'
Whether Dogecoin can ultimately achieve its fractal-driven fate and reach $3.94 remains to be seen. However, the historical technical symmetry shown in Kevin's chart strongly indicates that Dogecoin's long-term upward trend may be far from over.
As of the time of writing, DOGE is trading at $0.174.
