It looks like Dogecoin price action as well It has turned bearish After a bearish close in April. Predictions for the cryptocurrency Mimi are Not bullish on In the short term, especially considering the fact that it is now seeing a 47% price correction from its highest point in the current market cycle. Despite the recent decline, one analyst believes that all is still well with Dogecoin, and the cryptocurrency asset is only preparing to push into new price zones.
Repeated Dogecoin behavior from previous Bull Run
According to a recent analysis by popular cryptocurrency analyst Ali Martinez, Dogecoin's current price action is poised for a potential rally, despite the cryptocurrency's ongoing price correction. His analysis is based on interesting patterns on the Dogecoin price chart.
Although it is a very volatile asset class, patterns are an interesting way to predict the future movement of cryptocurrencies. Now, Dogecoin appears to be repeating some of the same patterns that led to its massive hacks in 2017 and 2021.
especially, Dogecoin broke out of a descending triangle pattern in the last quarter of 2023, a trend that appears to be happening and a first step for the cryptocurrency. As Martinez pointed out, the first time this breakout occurred was in 2017. However, DOGE made a 40% correction soon after before resuming the 982% uptrend. Once again, a similar breakout of the descending triangle in 2021 sent the cryptocurrency tumbling 56% before surging 12,197% to reach the current all-time high of $0.7316.
Now, in 2024, #DOGE It has once again broken the descending triangle!
It is currently witnessing a 47% price correction, which is very similar to previous cycles, which may spark the next cycle. $dawg The bull ran! pic.twitter.com/ZmuHmvIwei
– Ali (@ali_charts) May 1, 2024
now, Recent DOGE correction Last month after breaking out of the descending triangle means that the cryptocurrency could be preparing for a similar bounce higher. According to the DOGE price chart shared by Martinez, the first step is to break through the resistance at $0.224. If it can clear this level, it opens the way for a return to the 2021 high and a push towards the first target at around $1.2.
Looking further, Martinez's chart shows a final price rally above $6 in this bull cycle. For this to happen, Dogecoin will need to regain momentum and rise more than 4,700% from current levels over the coming months. While this price point seems excessive, Dogecoin has made epic highs before, rising more than 12,000% at one point in 2021 alone.
It's only a few months into 2024 Dogecoin It has already been on a wild ride this year along with the rest of the cryptocurrency market. At the time of writing, DOGE is trading at $0.125 and is down 16.92% in the past seven days. Trading volume has risen by 50% in the past 24 hours, indicating a return of investor interest.
DOGE bulls reclaim control of price | Source: DOGEUSDT on Tradingview.com
Featured image from MarketWatch, chart from Tradingview.com
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