Bearish Price Signal Emerges For Dogecoin (DOGE)

Dogecoin's renewed price uptrend could be poised for a setback as Dima James Potts, a market expert and investor has predicted that DOGE may be heading for a correction in the short term.

Market expert and investor Dima James Potts has predicted that Dogecoin (DOGE) may be due for a correction in the short term. His prediction comes as several indicators and current price action suggest that a pullback might be on the horizon for the largest meme coin.

Potts' analysis is bolstered by historical price trends, particularly in the last cycle, which triggered a notable pullback for Dogecoin (DOGE) amidst its bull run. This observation suggests that a similar scenario could unfold in the ongoing market cycle.

With speculation about profit-taking growing significantly, Potts' forecast raises concerns about the stability of Dogecoin's current upward momentum.

During the previous market cycle, Dogecoin experienced a sharp decline of about 56% shortly after hitting the 78.6% Fibonacci level. Notably, the meme coin has once again reached the 78.6% Fibonacci level this week, which might be signaling the same price correction before resuming its upside strength toward higher levels in the ongoing cycle.

While a substantial pullback could be imminent, Potts' prediction does not indicate a sell signal. Instead, it is merely a comparison of past cycle price movements with this current cycle. “As I mentioned in my previous posts, expect significant pullbacks on the way to the top,” he added.

It is worth noting that the market expert anticipates a market top for Dogecoin at the psychological $10 price mark. Potts has consistently underscored DOGE's path to the level in several posts, which he expects to kick off in 2025.

Considering past performances, as evidenced by a 9,000% increase in 2017 and an 18,000% spike in 2021, the expert is confident that DOGE may see a much larger rally this time around should the trend persist.

Earlier today, Dogecoin witnessed a drop to the $0.37 level after a notable price uptick during the weekend. However, the meme coin appears to be slowly regaining its upside momentum as DOGE has rebounded to $0.4366, indicating a 1% increase in the last 24 hours.

The brief pullback might be attributed to waning traders' optimism and interest in DOGE. Data from CoinMarketCap shows that its trading volume has turned negative, falling by over 28% in the past day, suggesting that investors might be dumping the asset to secure gains. Should investors go on a selling spree, Dogecoin could be set to experience a decline in the following days.