Dogecoin Could Rally 6,770% If Current Pattern Continues
An analyst has indicated that Dogecoin could experience a potential rally of approximately 6,770% if its current price pattern continues.
Dogecoin's Long-Term Ascending Channel
Analyst Ali Martinez recently discussed Dogecoin's long-term price movement within an Ascending Parallel Channel. This technical analysis pattern consists of two parallel trendlines that define the asset's price movements over time.
A Parallel Channel forms when an asset's price fluctuates between upper and lower trendlines, facing resistance at the top and support at the bottom. A breakout from either line indicates a continuation of the prevailing trend.
There are three types of Parallel Channels: those parallel to the time axis, positive slope channels (Ascending), and negative slope channels (Descending). The Ascending and Descending channels correspond to upward or downward consolidation phases, respectively. Dogecoin has been moving within such a pattern for nearly a decade, as illustrated in the analyst’s chart.
The chart shows that Dogecoin's weekly price has consistently remained within this Ascending Parallel Channel. The latest retest occurred earlier this year when DOGE bounced off the lower trendline.
Martinez noted that Dogecoin's current trajectory mirrors trends seen during the last two bull cycles. Each previous cycle featured an initial price increase followed by a minor decline before a significant rally.
Recently, Dogecoin has experienced a decline, suggesting it may be in a similar stepping-stone phase. Historical patterns indicate that a subsequent rally could push the price toward the upper level of the Ascending Channel.
The distance from the channel's upper limit suggests that a 6,770% increase is necessary for Dogecoin to reach that level. Observations will determine if the Ascending Channel remains intact and if historical patterns will repeat.
DOGE Price
Currently, Dogecoin is priced at approximately $0.32, reflecting a rise of over 2% in the past week.
