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Dogecoin is beginning to regain momentum after a sharp dropin the early hours of January 3, a move that liquidated many traders who had been bettingon continued upside. This decline wasn’t just another pullback,as it marked the most significant Dogecoin price drop in six months.
As noted by technical analyst Kevin (@Kev_Capital_TA), Dogecoin has just completed its second major correction in this ongoing bull cycle. Notably, the next move is a push towards $1 for Dogecoin. However, whether this recovery gains traction will largely depend on Bitcoin’s next move, as broader market sentiment continues to shape Dogecoin’s trajectory. Dogecoin Completes Second Major Correction, Echoing Past Bull Cycles
As noted bycrypto analyst Kevin, Dogecoin’s recent drop was its second major pullback this cycle. Furthermore, the recent pullback closely resembles corrections seen in the previous cycle before Dogecoin eventually shot upto reach its all-time high. Related Reading Dogecoin Price To Breakout To $1.4? Analyst Reveals Critical Levels To Watch For A Pump Or Crash 2 weeks ago
The recent drop saw Dogecoin reach a bottom of $0.2237 yesterday after a 32% fall from $0.329 just 24 hours earlier. Interestingly, this drop meant Dogecoin had corrected by about 58% from its $0.49 in December 2024. As pointed out by the analyst, this looks much like a similar playout in early 2021, when Dogecoin retraced by about 56.8% on its upward move. DOGE makes second major pullback | Source: Kevin on X
Both instances were the second major pullback in their respective cycles, and if the pattern holds like the first cycle, the latest dip may have set the stagefor the next leg higher for Dogecoin to finally break above $1. Will DOGE Rally To $1 Soon? Bitcoin’s Influence Is Key
Dogecoin’s road to $1 is still intact, but the timing of the next surge depends on a few factors and breaks above multiple resistance levels. One of the most notable factors is Bitcoin’s dominance in the crypto market. Related Reading Machine Learning Algorithm Predicts Dogecoin Price From January To December 2025 2 weeks ago
As Kevin pointed out, Dogecoin’s ability to resume its uptrend hinges largely on Bitcoin’s performance. The broader crypto market often follows Bitcoin’s lead, and if it maintains bullish momentum, the meme coin could soon follow suit. On the other hand, a fall or continued consolidation of the Bitcoin price could lead to a similar move for Dogecoin, as highlighted by Bitcoin’s breakbelow $93,000 yesterday.
At the time of writing, DOGE is trading at $0.2593 and is starting to push steadily upwards after bouncing off at $0.223. The key area for bulls to reclaim is $0.33, which has acted as strong resistance since January. A break above this level could signal renewed bullish momentum, potentially setting up Dogecoin for a steady climb toward $0.4 and then $0.5. Bitcoin also needs to registera notable break above $100,000. DOGE trading at $0.26 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com