Dogecoin To $1: Analyst Thinks Dream Milestone Could Be Hit In Coming Weeks
April 22 2024 - 1:00PM
NEWSBTC
An analyst has explained how a pattern forming in the Dogecoin
price may suggest a rally to $1, if historical trend repeats this
time as well. Dogecoin 1-Week Price Appears To Be Forming A Classic
Pattern In a new post on X, analyst Ali has discussed how DOGE
seems to have been showing a classic pattern in its weekly price
once again. This trend involves a technical analysis (TA) pattern
called the “Descending Triangle,” which, as its name suggests, is
shaped like a triangle. The pattern involves two trendlines between
which the price of the asset consolidates; one of these is a line
slopped downwards while the other is parallel to the time-axis.
This property of the price converging downwards as it goes through
the pattern is why it has descending in its name. Related Reading:
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other TA consolidation patterns, the upper line of the Descending
Triangle also provides resistance to the commodity, making tops
more probable to form at it. Similarly, the lower line acts as a
point of support and can help the price reverse back upwards. A
break out of either of these lines may result in a continuation of
the trend in that direction. This means that a break above the
triangle can be a bullish signal, while one below could suggest the
dominance of bearish momentum. Similar to the Descending Triangle,
there is also an Ascending Triangle in TA, which works much like
it, except for the fact that the parallel axis makes the upper
line, connecting together tops, while the lower line ascends up as
it joins higher lows. Now, here is the chart shared by Ali that
highlights a pattern that DOGE’s 7-day price has been forming
recently: The classic pattern that DOGE seems to have formed before
in its history | Source: @ali_charts on X From the graph, it’s
visible that the Dogecoin 1-week price had been trading inside a
long Descending Triangle between 2021 and this year, but the meme
coin found a break earlier and has since registered some notable
uplift. Recently, though, the cryptocurrency has reached a stage of
sideways movement. This, however, may not entirely be a bad thing,
as DOGE has also seen a similar trend of a Descending Triangle
break followed by consolidation in the past as well. Related
Reading: Bitcoin Trader Selling Pressure Declining, CryptoQuant
Head Explains Why As is visible in the chart, the previous two such
formations led to Dogecoin witnessing some very significant growth.
As such, the latest one may also prove to be bullish, if this
historical pattern continues to hold. “Based on past trends, we
might just see DOGE rocket towards $1 in the coming weeks!”
explains Ali. From the current spot price, such a potential rally
would mean a growth of a whopping 525% for the coin. DOGE Price
Dogecoin’s price action has been quite stale since the price plunge
earlier in the month, as the asset’s price is still trading around
$0.16. The price of the asset appears to have been moving sideways
since the drawdown | Source: DOGEUSD on TradingView Featured image
from Kanchanara on Unsplash.com, charts from TradingView.com
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