Buy Dogecoin Now? Analyst Believes DOGE Is Primed For A Surge
May 02 2024 - 3:15AM
NEWSBTC
In an analysis shared via X, crypto analyst Ali Martinez elaborated
on the ongoing price correction of Dogecoin (DOGE), positing that
it is a consistent precursor to major bull runs, drawing on
historical patterns to forecast future price movements. Martinez’s
commentary centers on the chart pattern known as the “descending
triangle.” This is a bearish formation that occurs when the price
follows a downward trendline intersecting a flat support line.
Typically, this pattern indicates a continuation of a downward
trend, but in the context of Dogecoin, Martinez suggests it
precedes significant bullish breakouts. “The ongoing Dogecoin price
correction is part of its usual behavior before massive bull runs!
Let’s dive in,” Martinez shared. He explained the historical
significance of this pattern in Dogecoin’s trading history: “In
2017, DOGE broke out of a descending triangle. Then, DOGE retraced
by 40% before entering a 982% bull run!” Related Reading: Machine
Learning Algorithm Predicts Dogecoin Price For May 2024 Martinez
further analyzed more recent cycles to reinforce his observations,
“In 2021, DOGE broke out of a descending triangle again. Then, DOGE
retraced by 56% before skyrocketing by 12,197%!” According to
Martinez, these retracements are not random but are characteristic
of how Dogecoin has behaved in previous cycles, setting the stage
for explosive gains. The analyst drew parallels to the current
market conditions: “Now, in 2024, DOGE has yet again broken out of
a descending triangle! It is currently undergoing a 47% price
correction, very similar to previous cycles, which could ignite the
next DOGE bull run!” This assertion suggests that the current
market downturn might be an opportune buying moment ahead of
potential gains. Martinez’s analysis underscores the cyclical
nature of Dogecoin’s price movements, suggesting a pattern of sharp
declines followed by dramatic recoveries. “Over the years, Dogecoin
appears to mirror its previous bull cycles! All you need is a
little bit of patience,” he concluded. Short-Term Dogecoin Price
Analysis Amidst this optimistic prediction, the Dogecoin price is
in a precarious scenario in the short-term. Since mid-April, DOGE
has experienced significant technical resistance. Particularly, the
DOGE price was consistently rejected at the 50-day EMA over
multiple instances, indicating strong selling pressure at higher
price levels. Related Reading: Alarm Bells Ring For Dogecoin:
Bearish Signal Points To 40% Crash Amid a broader market downturn,
the trajectory was accentuated when Dogecoin’s price broke below
the crucial 100-day EMA. This level, often watched by traders for
signs of medium-term market direction, had previously offered
support. The breach underscores a weakening market sentiment and
could signal extended losses. As of press time, Dogecoin’s price
hovered near $0.1259 after narrowly holding above the 200-day EMA
yesterday, a key psychological and technical barrier. This moving
average is now a pivotal point for Dogecoin; its sustained breach
on the daily chart could significantly alter the market structure,
potentially triggering a slide towards the $0.1005 support level.
The Relative Strength Index (RSI) is at 31.63, edging close to the
oversold territory but not conclusively signaling an imminent
reversal. This indicates that while the market is nearing oversold
conditions, the selling pressure has not fully abated. One last leg
down might be necessary to get DOGE into “oversold” territory in
order to mark a local bottom. Featured image created with DALL·E,
chart from TradingView.com
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