Dogecoin rally in danger? Past cycle trends suggest possible rejection

Robust market optimism has triggered an uptrend Dogecoin As the dog-themed meme coin is making significant price gains compared to many major cryptocurrency assets, with a daily gain of over 50%. While the coin has risen significantly in recent days, a crypto analyst has predicted that the renewed uptrend may face rejection.

Historical trends are repeating themselves for Dogecoin

In an important one update For Dogecoin investors and traders, Master Kenobi, a market expert and trader, has warned of a possible short-term rejection in Dogecoin’s recent price rally. The analyst’s forecast is based on trends from the previous cycle, with DOGE facing strong resistance after a similar upward move.

Furthermore, his perspective suggests that without sustained bullish support, there is a possibility that the meme coin could experience the same price hurdles as the The rally of the last cyclewhich could lead to a short correction or price consolidation.

Master Kenobi believes a rejection of DOGE’s upswing is likely as he expects a final major resistance $0.33 before retesting its all-time high and the trendline at $0.40. It is worth noting that the decline will likely be followed by a consolidation period of around 1 to 2 weeks, as was the case in the last bull cycle. “This scenario would be perfectly consistent with what we observed in the same period of the previous cycle,” he added.

According to the market expert, the 91-day rectangle is currently showing an almost identical price development as that past cycle. For this reason, Kenobi believes that history could repeat itself and create similar conditions for a breakout, as shown by the comparative pattern of initial rejection accompanied by a consolidation phase.

Even though DOGE’s performance over the past cycle points to a decline, the expert also emphasized that the likelihood of a sustained uptrend is increased by this fractal similarity, especially if key support levels remain stable after the upcoming rejection phase.

So far, traders and investors are closely monitoring Dogecoin’s positive momentum in anticipation of a possible correction in order to adjust their positions amid the ever-increasing demand for the second-largest Bitcoin Meme coin.

The next few weeks could be bumpy for DOGE

Master Kenobi’s insightful analysis agrees with the prediction of crypto expert Kevin, who has also done the same pointed out a likely price correction for DOGE in the coming weeks after examining Dogecoin’s weekly golden cross formation.

According to Kevin, the last time the meme coin formed a weekly golden cross, it saw an increase of around 200% in the same week. However, in the following three weeks DOGE consolidated and experienced a 50% correction.

Four years later, the meme coin is once again showing the same cross-and-pump trend. Given the development, Kevin believes that in this area it is logical that DOGE could see a decent size correction or simply consolidate for a short period of time.

Featured image from Adobe Stock, chart from Tradingview.com