Dogecoin Breaks Out Of Descending Triangle Like It Did In 2021, Analyst Sets $6 Target
May 02 2024 - 5:00PM
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The Dogecoin price action seems to have turned bearish after a
bearish close to April. Projections for the meme cryptocurrency are
not bullish in the short term, especially considering the fact that
it is now experiencing a 47% price correction from its highest
point in the current market cycle. Despite its recent plunge, one
analyst believes all is still well with Dogecoin, and the crypto
asset is only gearing up for a bull run into new price
territories. Dogecoin Repeating Behavior From Previous Bull
Run According to a recent analysis by popular crypto analyst Ali
Martinez, Dogecoin’s current price action is setting up for a
potential bull run, despite the cryptocurrency’s ongoing price
correction. His analysis is based on interesting patterns on the
Dogecoin price chart. Although they are 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 breakout in 2017
and 2021. Specifically, Dogecoin broke out of a descending triangle
pattern in the last quarter of 2023, a seemingly occurring trend
and a first step for the cryptocurrency. As Martinez noted, the
first time this breakout happened was in 2017. However, DOGE went
on a 40% correction shortly after before resuming a 982% bull run.
Again, a similar breakout of a descending triangle in 2021 saw the
crypto retracing by 56% before skyrocketing by 12,197% to reach its
current all-time high of $0.7316. 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! pic.twitter.com/ZmuHmvIwei — Ali
(@ali_charts) May 1, 2024 Now, the recent DOGE correction in the
past month after breaking out of a descending triangle means the
crypto could be gearing up for a similar bounce up. According to
the DOGE price chart shared by Martinez, the first step is breaking
above resistance at $0.224. If it can hurdle that level, it opens
up a run back to the 2021 high and a push-up to a first target of
around $1.2. Looking further out, Martinez’s chart shows an
ultimate price surge above $6 in this bull cycle. For this to
happen, Dogecoin would need to regain momentum and rally over
4,700% from current levels over the coming months. While this price
point looks overachieving, Dogecoin has pulled off epic rallies
before, surging over 12,000% at one point in 2021 alone. It has
only been a few months into 2024 Dogecoin has already been on a
wild ride this year along with the rest of the crypto market. At
the time of writing, DOGE is trading at $0.125 and is down by
16.92% in the past seven days. Trading volume is up by 50% in the
past 24 hours, which suggests 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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