Dogecoin price could be preparing for Strong upward movementwhere a cryptocurrency analyst identified a recurring pattern in the meme’s movements. This optimistic view of Dogecoin’s future path comes after the meme witnessed a decline Sharp collapse in prices By more than 46%, pushing it to new lows.
Dogecoin price is preparing for a major upward movement
Nah Price decline In December, Dogecoin saw a massive 46% collapse, falling from its yearly high as its momentum took a significant dive. Despite this correction, The meme coin is showing signs of recoveryIt is witnessing renewed strength after recording significant gains in January.
Maelius cryptoanalyst subscriber On X (formerly Twitter) Dogecoin’s recent collapse may have pushed its price to its lowest point, which could pave the way for its next upward move. According to his analytical report, which indicates the price movement of Dogecoin during previous sessions, the consistency in the volume of previous waves enhances the possibility that the meme coin has already been Hit her bottom.
Looking at the analyst’s Dogecoin chart,… Meme currency price history It reveals a recurring pattern of cyclic waves characterized by massive spikes followed by sharp corrections. Each upward movement, which is marked by a wave number on the chart, consolidates during individual sessions.
For example, in April 2021, Dogecoin recorded a 53% drop, followed by a massive 1,175% rise to all-time highs. A similar but more significant collapse in prices occurred during the period Bear market From July 2022 to 2023. At that time, the price of Dogecoin experienced multiple price drops and a long consolidation period. At the end of 2023, the memecoin saw a modest recovery, with its price rising by 308%.
Another notable aspect is highlighted in Maelius’s analysis Purchase area On the Dogecoin price chart. This vital area has historically served as a strong supply level for Dogecoin, representing a price range in which demand is high Accumulation occurs.
According to Milius, Dogecoin has rebounded from this buy zone, a development seen as a positive step for the meme coin’s next upward move. With Dogecoin believed to have bottomed and its recent rebound from the buy zone, the analyst is forecasting a bullish rally that could push the memecoin higher. New all-time high From $2.3.
Milius also noted that each upward move in the previous sessions was stronger than the previous one, which means that Dogecoin price hike next They can be stronger than those observed in previous cycles.
Dogecoin price chart is forming a bullish flag
New Dogecoin price analysis by Trader Tardigrade He appears That is currently the meme’s currency Formation of a new bullish flag On the 4-hour chart. A bull pennant is a technical chart pattern that resembles a small symmetrical triangle, indicating a continuation of a potential uptrend.
In the case of Dogecoin, the formation of a bullish flag indicates that after experiencing a previous rally, Dogecoin is standardized It could be preparing for another price rise when it breaks out of this pattern. CoinMarketCap data reveals that Dogecoin is Slowly gaining momentumrising by 19.3% over the past week to reach a price of $0.38.
Featured image created with Dall.E, chart from Tradingview.com