A analyst has shared that based on past trends, the developing pattern in Dogecoin‘s price could potentially lead to a surge up to $1.
Dogecoin 1-Week Price Appears To Be Forming A Classic Pattern
On X’s latest update, researcher Ali shares his insights on DOGE‘s recent behavior in the weekly market. He points out that this cryptocurrency appears to be following a common pattern using a technical analysis (TA) figure called the “Descending Triangle.” This pattern resembles a triangle in shape.
The price of the asset follows a specific chart formation, featuring two trendlines. One line inclines downward while the other remains horizontal. The asset’s price oscillates between these lines, resulting in this pattern being called “descending” due to the consistent downward trend.
In simpler terms, the resistance line in a Descending Triangle chart pattern functions similarly to other consolidation patterns. It offers resistance to the commodity’s price, increasing the likelihood of price peaks forming at that level. Conversely, the support line serves as a crucial point where the price may reverse and move upwards again.
If either line is breached, it could indicate a persistent trend continuation. A breach above the triangle might signify a bullish trend, while a breach below could indicate a prevailing bearish trend.
An Ascending Triangle in Technical Analysis resembles a Descending Triangle but with a key difference: instead of the lower trendline connecting lower highs and the upper trendline connecting higher lows, it’s the reverse. The upper trendline connects successively higher highs while the lower trendline ascends to touch new higher lows.
Here’s a chart presented by Ali that reveals a trend in DOGE‘s seven-day price movement over the past few days:
Based on the chart’s representation, Dogecoin’s value within the past week remained confined in a prolonged Downward Triangle pattern from 2021 until now. However, this cryptocurrency unexpectedly broke free from this trend and has since experienced a considerable price increase.
Lately, the cryptocurrency has been exhibiting a period of sideways drift. While this might initially seem unfavorable, it’s important to note that DOGE has previously experienced this pattern of a Descending Triangle breakdown leading to consolidation.
Based on the chart’s representation, the last two similar structures have triggered substantial growth for Dogecoin in the past. Therefore, it’s possible that the current structure will lead to further gains if this historical trend persists.
According to historical patterns, Ali suggests that DOGE could significantly increase in value and potentially reach $1 within the next few weeks. This would represent an impressive gain of over 500% from its current price.
DOGE Price
The price of Dogecoin hasn’t shown much activity lately following its decline to approximately $0.16.
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2024-04-22 20:10