A major storm swept through the crypto market overnight, sinking various crypto assets, including Dogecoin (DOGE), to new monthly lows.
On Monday, Dogecoin plummeted to $0.3800, down from $0.4673. This retracement represents a significant loss of approximately 19% for Dogecoin holders. Notably, the Dogecoin price crash mirrored Bitcoin’s retest of lows at $94K on the same day.
While this outcome has raised concerns among investors, analysts are urging market participants to view it as an opportunity to buy at a discounted price before the next potential moonshot.
In this latest Doge news, Analyst Ali Martinez took to X to share his observation with the crypto community, suggesting that Dogecoin’s recent price surge, followed by its latest dip, indicates it is still in the early stages of a parabolic run, based on historical patterns.
Martinez specifically pointed to Dogecoin’s behavior during the 2017 and 2021 cycles. He noted that after Dogecoin broke out to the upside following Bitcoin’s halving, it experienced several weeks of large green weekly candles. This price action eventually gave way to a correction.
After this correction, the subsequent rally was even stronger than the initial one before the dip. This pattern has been consistent across the past two cycles.
Given the current dip, Martinez sees it as part of the same historical trend, with Dogecoin undergoing a correction after weeks of upward momentum. He expressed gratitude for the dip, noting that it provides an opportunity to buy more DOGE and position for the next major wave.
Buying More Dogecoin at $0.30, Target Remains $3
Specifically, Martinez disclosed that he is buying more Dogecoin in the price range of $0.40 to $0.30. He maintains that the next near-term target for Dogecoin, in the anticipated comeback, is $3.
Notably, the meme coin is attempting to recover from its recent dip. It is currently trading at $0.409, still down 9.2% from its intraday high. Should a rebound occur from this range to $3, holders could see potential gains of 634%.
Dogecoin Could Reach $18 if Things Go Wild
Martinez also suggested that things could get even more explosive for Dogecoin. According to him, in this scenario, an $18 price target for the meme coin is possible.
However, based on historical trends, before Dogecoin can reach $18, the crypto market may experience a major pullback, potentially erasing up to 50% of Dogecoin’s gains as seen in previous cycles.
With this possibility in mind, Martinez urged holders to remain patient during the dip, as those who are patient could reap significant rewards during the bull market phase.