Cryptocurrency analyst Ali Martinez, known as @ali_charts on X, shared a very bullish scenario for Dogecoin (DOGE) price based on historical price action and pattern analysis today. Martinez emphasized a recurring cycle in Dogecoin’s market behavior, suggesting the potential for massive gains similar to those seen in previous bull runs.
Is Dogecoin Headed To Repeat History?
According to the analysisDogecoin appears to be following a consistent pattern where it consolidates within a descending triangle, followed by large rallies of between 140% and 230%. This is usually followed by retracements of between 56% and 60%, paving the way for a sharp rally.
“I didn’t sell a single Dogecoin. I just bought! Dogecoin is playing the same pattern we’ve seen before. It consolidates in a descending triangle, sees a 140% to 230% rise, then drops 56% to 60% before entering a bull run. So we just have to wait!!!” Martinez said via X.
The chart shared by the crypto analyst illustrates a recurring theme in Dogecoin’s trading history. In 2016, DOGE’s price successfully broke out of a descending triangle pattern, leading to a massive 229.58% surge, followed by a massive 60.44% pullback. This pullback paved the way for the initial rally seen in 2017.
Similarly, in 2020, Dogecoin saw a 138% surge after breaking out of another descending triangle pattern, but later underwent a 59.86% decline. However, this decline paved the way for another notable price surge in 2021.
The second wave of Dogecoin price rallies was historically significant. Over the four months from September 2017 to January 2018, Dogecoin saw a near-meteoric rise of about 2,900%, rising from $0.0007 to $0.0194, after a 60% decline, Martinez noted. In the most recent cycle, from February 2021 to May 2021, Dogecoin surged about 1,700%, rising from $0.041 to an all-time high of $0.7316.
A rally similar to the 2017-2018 high — around 2,900% — could take DOGE to around $4 from its current level. Meanwhile, a rally similar to the 2021 high — around 1,700% — would push DOGE to around $2.4. Notably, Martinez’s chart indicates that he expects a clear break above the $2 mark, although no specific price target has been set.
In March of this year, Martinez books Via X: “I feel like my fellow bulls are getting distracted by the shiny new coins, but Dogecoin remains the most important altcoin in the sector. From a technical perspective, Dogecoin appears to be reversing the 2018-2021 pattern. If so, Dogecoin could be at the beginning of a massive bull run!” At the time, Martinez shared a chart that showed he expected Dogecoin to surpass $11 in this bull run.
Yesterday, Martinez gave a short-term price prediction for DOGE, stating via X: “Dogecoin appears to have broken out of the wedge, suggesting a 44% upside target!” According to the chart provided by the crypto analyst, the next major short-term resistance levels for DOGE are located at $0.14479, $0.1613, and $0.1844.
It seems like #Dogecoin doug It has broken out of the wedge, indicating a 44% upside target! pic.twitter.com/Tyw7pF9TwG
— Ali (@ali_charts) July 24, 2024
At the time of publishing this report, DOGE was trading at $0.1241.
Featured image created using DALL E, chart from TradingView.com