Robust market optimism has led to a bullish run Dogecoin as the dog-themed meme coin attracts notable price gains against many major cryptocurrency assets with daily gains of over 50%. Although the coin has risen significantly in recent days, one crypto analyst has predicted that the renewed upside is about to be rejected.

Historical trends reoccurring for Dogecoin

On an important note update For Dogecoin investors and traders, Master Kenobi, a market expert and trader, has warned of a possible downside to Dogecoin’s recent price surge in the short term. The analyst’s forecast is based on trends from the previous cycle, where DOGE encountered strong resistance after a similar upward move.

Furthermore, his perspective suggests that without continued bullish support, there is a possibility that the meme coin will encounter the same price hurdles as the rally of the last cyclewhich could result in a short correction or price consolidation.

Master Kenobi believes a rejection of DOGE’s revival is likely, as he expects a final major resistance at $0.33 before retesting its all-time high and trendline at $0.40. It is worth noting that the decline will likely be followed by a consolidation phase lasting roughly one to two weeks, as seen in the last bull cycle. “This scenario would perfectly match what we observed during the same period in the previous cycle,” he added.

According to the market expert, the 91-day rectangle currently shows an almost identical price development as the past cycle. As a result, Kenobi believes history may repeat itself, creating similar conditions for an outbreak, as evidenced by the comparative pattern of initial rejection accompanied by a consolidation phase.

While DOGE’s performance over the past cycle points to a pullback, the expert also highlighted that the likelihood of a sustained uptrend is fueled by this fractal-like similarity, especially if crucial support levels remain firm after the impending rejection phase.

So far, traders and investors are closely monitoring Dogecoin’s bullish momentum for a possible correction to adjust their positions in light of continued rising demand for the second-largest market. meme coin.

The coming weeks could be bumpy for DOGE

Master Kenobi’s insightful analysis matches the prediction of crypto expert Kevin, who has also made the same pointed out a likely price correction for DOGE in the coming weeks after examining Dogecoin’s weekly golden cross formation.

According to Kevin, the last time the meme coin formed a weekly golden cross, it experienced an increase of about 200% in the same week. But over the next three weeks, DOGE consolidated and saw a correction of 50%.

Fast forward to 4 years later, the meme coin is once again showing the same cross and pump trend. Considering the development, Kevin believes that at this level it is logical that DOGE will witness a decent size correction or simply consolidate for a short time.

Featured image from Adobe Stock, chart from Tradingview.com