Dogecoin Eyes $1 After Second Major Correction Hits 58%

Dogecoin is showing signs of recovery after experiencing a significant decline on January 3, which impacted many traders who had anticipated sustained gains. This downturn was not merely a routine pullback; it represented Dogecoin's most substantial drop in half a year. According to technical analyst Kevin (@Kev_Capital_TA), Dogecoin has now undergone its second significant correction within the current bull cycle.

The next potential milestone for Dogecoin is reaching the $1 mark, though its recovery will heavily hinge on Bitcoin's performance, given its influence on the broader market sentiment.

Crypto analyst Kevin highlights that Dogecoin's recent downward movement constitutes its second major pullback in this cycle, mirroring corrections from the previous bull cycle when Dogecoin ultimately soared to its record high.

The latest price drop saw Dogecoin touching $0.2237, following a 32% decline from $0.329 in just 24 hours. In context, this represents a correction of approximately 58% from its December 2024 peak of $0.49. This pattern resembles the early 2021 scenario when Dogecoin retraced 56.8% during its upward trajectory.

Both corrections were the second major pullbacks in their respective cycles. If historical patterns persist, the current dip might pave the way for Dogecoin to surpass the $1 threshold.

Dogecoin's journey to $1 remains plausible, but future surges will depend on overcoming several resistance levels. A crucial variable in this equation is Bitcoin's influence over the cryptocurrency market. As Kevin explains, Dogecoin's ability to resume its upward trend largely depends on Bitcoin's performance. The wider crypto market typically mirrors Bitcoin's movements. Should Bitcoin maintain a bullish trend, Dogecoin could follow. Conversely, if Bitcoin's price declines or consolidates, Dogecoin may similarly face challenges, as demonstrated by Bitcoin's recent dip below $93,000.

Presently, Dogecoin is trading at $0.2593 and exhibiting a gradual recovery after rebounding from $0.223. For bullish momentum to persist, Dogecoin must surpass the $0.33 resistance level, a barrier since January. Success here could lead to sustained gains, potentially approaching $0.4 and then $0.5. Concurrently, Bitcoin needs to achieve a decisive break above $100,000 to significantly impact Dogecoin's upward trajectory.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.