Dogecoin To Rally 6,770% If This Pattern Holds: Crypto Analyst
One analyst explained that if Dogecoin continues to follow this pattern, Dogecoin could end up rising by around 6,770%.
Dogecoin has been trading within a long-term ascending channel
in a new postal Over at X, analyst Ali Martinez discussed the long-term pattern in which Dogecoin’s weekly price has been trading within. The pattern in question is rising parallel channel From the perspective of technical analysis.
one parallel channel Refers to a consolidation pattern that forms when an asset’s price moves within two parallel trend lines. The upper lines are formed by joining the continuous tops together, while the lower lines connect the bottoms.
While the asset is within a channel, it may face resistance at the top line and support at the bottom line. A breakout of either of these levels could mean the trend will continue in this direction.
There are three types of parallel channels: channels parallel to the time axis, channels with positive slope, and channels with negative slope. The first type does not have a specific name, but the latter two do; they are called ascending and descending parallel channels respectively.
Considering how these two types slope the trendline, they correspond to consolidation phases when an asset experiences an upward or downward trend. Dogecoin appears to have been operating in this pattern over the past decade, as shown in a chart shared by analysts.
As you can see from the chart, Dogecoin’s 1-week price has stayed within this ascending parallel channel throughout its history. The most recent retest occurred earlier this year, when DOGE saw a rebound in the bottom line.
As Martinez highlights in the chart, DOGE’s current trajectory is reminiscent of trends seen over the past two years bull market cycle. In every bull market, cryptocurrencies first rise, then fall slightly, eventually leading to a bull rally.
Dogecoin has been declining over the past few weeks, perhaps indicating that it is now in a downward phase. Depending on what happens next in the past cycle, the meme coin may soon start to rebound and find its top in the upper levels of the ascending channel.
Based on the current distance to the upper limit of the channel, analysts note that Dogecoin would need to rise by 6,770% to reach that level. Now, it remains to be seen whether the meme coin will continue to maintain its upward channel and whether something similar to history will happen this time.
dog price
At the time of writing, Dogecoin price is floating around $0.32, up more than 2% in the past seven days.
