Dogecoin, the popular meme coin, has caught the attention of analysts due to a long-term pattern it has been trading inside. According to analyst Ali Martinez, Dogecoin has been following an Ascending Parallel Channel, a type of consolidation pattern in technical analysis. This pattern consists of two parallel trendlines – an upper line connecting successive tops and a lower line connecting bottoms. Dogecoin has been trading within this channel for the past decade, with the most recent retest occurring earlier this year.
Martinez points out that Dogecoin’s current trajectory is similar to what was seen during the last two bull cycles. In both instances, the cryptocurrency experienced an initial upward burst followed by a small decline before the bull rally took off. This suggests that Dogecoin may be in a stepping-stone decline phase right now, potentially setting the stage for a new rally that could reach the upper level of the Ascending Channel.
Based on the current distance to the channel’s upper level, Martinez notes that Dogecoin would need to rally by 6,770% to reach that point. This would be a significant increase, but if history repeats itself, it is not out of the realm of possibility. The key question now is whether the Ascending Channel will continue to hold for Dogecoin and if a similar pattern to past cycles will emerge once again.
In terms of price, Dogecoin is currently trading around $0.32, with a slight increase of over 2% in the last seven days. The price chart for Dogecoin shows potential for further movement based on the Ascending Parallel Channel pattern it has been following. It will be interesting to see how things unfold for Dogecoin in the coming weeks and whether it will indeed witness a significant rally as predicted by the analyst.