Dogecoin’s price action over the past 24 hours has reflected the turbulence sweeping across the broader crypto market. The meme coin suffered a sharp decline on February 3, tumbling by double digits as the market underwent a widespread selloff, triggering mass liquidations across multiple cryptocurrencies. Dogecoin itself was not spared, with a considerable number of traders facing liquidations.

However, despite the short-term pain, crypto analyst ÐOGECAPITAL (@DimaPotts36) suggests that this downturn was part of a much larger setup, one that could catapult Dogecoin beyond its all-time high toward a new peak between $1.50 and $2.10.

Dogecoin Price Crash Aligns With Historical Trends

ÐOGECAPITAL’s latest analysis indicates that Dogecoin’s recent crash was anticipated as part of the asset’s broader market cycle. The analyst shared insights pointing to historical price behavior, drawing comparisons to Dogecoin’s previous bullish cycles. On November 24, 2024, the analyst had outlined expectations for a significant correction, referencing how the price had previously retraced after reaching the 78.6% Fibonacci level in a past cycle.

At that time, Dogecoin had surged to this key Fibonacci level before experiencing a sharp -56% pullback, which later gave way to a massive rally. The analyst had emphasized that this pattern could repeat, warning that investors should expect significant corrections on the way to new highs. With DOGE now undergoing a similar retracement, ÐOGECAPITAL believes the conditions are aligning for the next leg of the rally.

Price Rebound Could Push DOGE Price To $1.50 And Beyond

Following the expected pullback, which materialized as Dogecoin reached a bottom of $0.2237 in the past 24 hours, the analyst noted that Dogecoin is now gearing up for an eventual push to new highs. In his latest statement, he reaffirmed his confidence that the asset will soon resume its upward trajectory.

Once the pullback is over, Dogecoin could resume its upward trajectory and start trading above multi-year resistance levels. In this case, the analyst noted that this could push the meme coin towards a peak of at least $1.5 or to an upper end of $2.10. These targets are grounded in Fibonacci extension levels from the 2022 bear market low.

As of now, DOGE is in its third cycle and might be on the way to repeat the outcome of the second cycle. Notably, the price projections don’t stop here, as the Fibonacci extension analysis shows that Dogecoin could even reach as high as $3.94 this cycle.

Despite the bearish sentiment surrounding the recent price drop, ÐOGECAPITAL’s analysis provides a bullish outlook. At the time of writing, DOGE is trading at $0.2636, up by about 6.3% in the past 24 hours. However, it still remains down by about 21.3% in a seven-day timeframe, having lost the support at $0.31. The first step to reaching $1.5 would be for the Dogecoin bulls to regain this support at $0.31 and then break above resistance at $0.5 before eventually breaking above its current all-time high of $0.73.

Featured image from Adobe Stock, chart from Tradingview.com

The Shiba Inu burn rate witnessed a remarkable uptick of over 550% on Tuesday, fueling investor optimism amid a broader crypto market recovery. Notably, over 4 million coins were again removed from the asset’s circulating supply, boosting the meme coin’s tokenomics. Simultaneously, SHIB price witnessed a nearly 10% uptick intraday, leveraging the broader market trend and burn rate impact.

Shiba Inu Burn Rate Blows Up Over 550%, Investors Optimistic As Supply Shreds

According to an X post by the tracker Shibburn on February 4, the Shiba Inu burn rate surged 567.83% in the past 24 hours. This remarkable upswing is attributable to 4.61 million coins being removed from the crypto’s circulating supply.

For context, the SHIB token burn mechanism has constantly dealt a blow to the circulating supply, with nearly 1 billion coins removed just the previous month. These coins are sent to a null address, thereby making their retrieval impossible. At the time of reporting, the meme coin’s market supply further shredded to reach 589.25 trillion tokens.

As a result, traders and investors eye a bullish outlook for the meme coin, a market sentiment based on the law of supply and demand.

Crypto Market Recovery Solidifies Optimism

Meanwhile, the broader market recovery has substantially impacted investors’ sentiment on Tuesday. As a result of the quickest trade war, the crypto market recovered as a 30-day halt on Trump’s new tariffs for Canada and Mexico was announced.

While Bitcoin price recovered and touched a $102K high intraday, altcoins and meme coins mirrored a similar price action. Simultaneously, even the Shiba Inu coin’s price mirrored a recovery, with the burn rate surge further bolstering it.

Can SHIB Price Hit $0.000018 Riding The Burn Rate Surge?

At the time of reporting, SHIB price witnessed an 11% uptick in value and is currently trading at $0.00001560. The meme coin’s 24-hour low and high were $0.00001358 and $0.00001691, respectively. As mentioned above, the current bullish movement falls in line with the broader trend and burn rate uptick.

Further, a recent Shiba Inu price analysis by CoinGape revealed that large transaction volumes for the token surged remarkably, sparking bullish sentiments over future movements. Notably, this data suggests that institutional or large-scale investors may be capitalizing on the recent market volatility to accumulate, signaling price gain looms. The next vital price point for the meme coin to reclaim remains $0.000015, per the analysis.

Intriguingly, with the Shiba Inu burn rate surge and broader market recovery weighing in, the current price is above the level mentioned above. A sustained bullish momentum could help the token move toward $0.000018, supported by the constant reduction of supply with burns.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.