‘$6.9 Is A Magnet’, Analyst Predicts

Dogecoin has plunged violently over the previous 24 hours, shedding a big chunk of its worth in a brutal correction throughout your entire crypto market. What seemed like a maintain above $0.25 become a quick breakdown that dragged the Dogecoin worth to as little as $0.148 inside 24 hours.

Nonetheless, technical evaluation from crypto analyst Kaleo reveals Dogecoin is able to hit new all-time highs. In a submit on X, he doubled down on a remarkably bullish prediction, stating that $6.90 is a “magnet” for Dogecoin.

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Dogecoin Chart Tells The Story

In his post on the social media platform X, Kaleo famous how members of the crypto group are more and more waking as much as see how primed Dogecoin is to achieve increased ranges. The chart accompanying Kaleo’s submit reveals the historic sample that Dogecoin has adopted after earlier Bitcoin halvings. 

Every halving has all the time been adopted by years of huge upside strikes in Dogecoin’s worth, with the meme coin breaking out of long-term descending resistance strains to report exponential beneficial properties. Examples proven on this chart are the 2017 and 2021 explosive worth surges. 

Kaleo recommended that the present market section mirrors the identical construction seen simply earlier than the 2021 bull run, when Dogecoin broke above a key lower-high resistance from its earlier all-time excessive. This second is illustrated on the chart with the label “We’re right here.”

Dogecoin Price Chart. Source: @CryptoKaleo on X

The $6.90 Magnet: Kaleo’s Logic Behind The Forecast

Kaleo acknowledged that the projection of a $6.9 Dogecoin worth goal would possibly sound a bit too bullish, however his logic is predicated on the logic of market cap math. In his submit, he defined that his projection for Bitcoin this cycle is to surpass $500,000. If Bitcoin surpasses $500,000 as anticipated, it will translate to a $10 trillion market capitalization. 

This sheer quantity of influx would circulate into the remainder of the crypto market, and Dogecoin might theoretically attain 10% of Bitcoin’s valuation, simply because it did through the 2021 mania. That ratio implies a $1 trillion market cap for Dogecoin, which is equal to a $6.94 worth per token based mostly on the present circulating provide. 

Dogecoin’s current worth crash has complicated this bullish narrative. As a substitute of confirming an imminent breakout, the meme coin has fallen beneath the $0.25 help degree. On the time of writing, Dogecoin is buying and selling at $0.1971, down by 21.4% prior to now 24 hours and having reached an intraday low of $0.1489.

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The breakdown seems to be just like the type of market-wide liquidity flushes typically seen earlier than main reversals. But, it additionally dangers extending Dogecoin’s bearish construction and delaying any breakout if the worth fails to recuperate shortly. Proper now, restoration above $0.25 is necessary for bulls to rebuild bullish momentum.

Featured picture from Unsplash, chart from TradingView