As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the latest analysis shared by Ali Martinez regarding Dogecoin (DOGE). The similarities between DOGE’s current trend and past cycles are striking, to say the least.
According to an analyst, there are signs that Dogecoin might be preparing for another price surge based on past trends.
Dogecoin Has Recently Shown Similar Trend To Past Cycles
Analyst Ali Martinez shares insights on X regarding the recurring pattern that Dogecoin has been displaying in its monthly pricing lately. Here’s the chart provided by him, illustrating this intriguing trend.
Over the past few years, from 2021 to 2024, I’ve noticed Dogecoin seemed to be trapped within an elongated, downward-sloping triangle formation – a pattern known in technical analysis as a Descending Triangle. This shape, as the name suggests, resembles a triangle that slopes gradually downwards, hinting at potential price action.
Here’s a more conversational rephrasing: The cost of the asset stabilizes by oscillating between two lines – one flat along the timeline, representing the lowest point, and another inclining towards the flat line, marking the highest point.
Similar to other technical analysis patterns, the upper region tends to function as potential resistance, whereas the lower region serves as a possible support. Additionally, if either of these levels is breached, it could suggest a continued movement in that direction, following the current trend.
According to the graph, it’s clear that Dogecoin has successfully moved beyond its long-term Descending Triangle this year. As predicted by the pattern, this break above the upper boundary triggered a significant increase, resulting in nearly a 208% growth in the value of the meme coin.
From the summit of the run, there’s been a significant pullback of approximately 65% for the asset. Yet, this decline might not be entirely negative. In fact, an analyst suggests that the series of events Dogecoin has experienced lately resembles what happened on two previous occasions in its history.
In these two situations, DOGE managed to break free from a prolonged Descending Triangle pattern, leading to a significant surge, followed by a comparable pullback akin to the recent one. Subsequently, the memecoin experienced full-fledged bull runs in each instance.
According to Martinez’s analysis of historical trends, he suggests that following a recent 65% decline, DOGE may be preparing for its next significant surge! It remains uncertain at this point how the asset’s price will unfold moving forward and whether a similar rally will occur again as it did previously.
In a separate report, it’s been noticed that whales (large investors) have become increasingly active in the Dogecoin network of late, a fact highlighted by some analysts in their recent posts.
A surge in transactions by significant investors might result in heightened volatility for Dogecoin. If these large-scale transfers are being made for purchasing reasons, it could potentially drive the price upward overall.
DOGE Price
At the time of writing, Dogecoin is trading around $0.11, down more than 7% over the last week.
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2024-10-08 15:40