The Dogecoin price is currently trading within a bearish setup as it continues to undergo correction following a remarkable price surge in the past two months. Nonetheless, technical analysis suggests that the leading meme coin is still trading in a bullish setup on the larger timeframe. 

In a technical analysis of Dogecoin’s price movement on the 2-week candlestick chart, crypto analyst Javon Marks noted a looming 570% rally for DOGE, which is contingent upon a break above the 1.0 Fibonacci extension level.

Fibonacci Extension Indicates Bullish Momentum

According to a Dogecoin technical analysis posted on social media platform X by Javon Marks, the Dogecoin price is currently in the midst of its third major bullish cycle since its creation. Drawing parallels from Dogecoin’s historical price action during its previous two bullish cycles, Marks suggests that the cryptocurrency is well-positioned to go on a 570% increase from its current price.

Using the Fibonacci extension indicator, he pinpointed the 1.618 level as the first important bullish target this cycle. This is because the last two cycles have been highlighted by a break above this Fib level when projected from the low of the preceding bearish phase. As such, Dogecoin has surpassed this level during each of its past bull runs. 

According to the chart below, the bearish phases have been highlighted by Dogecoin bouncing off a relatively constant support level. This price action is then followed by strong bullish candles that break above the previous cycle’s all-time high. 

The current (third) Dogecoin cycle is currently playing out the same way. However, the meme coin seems to have faced a notable resistance level on its way to reclaiming the previous cycle’s all-time high of $0.7316. Particularly, the Dogecoin price en

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Author: Scott Matherson