2 weeks Ago By Isaac M
An analyst has explained how Dogecoin could be gearing up for the next bull run if historical patterns are any indication. Recently, Dogecoin has shown a trend similar to past cycles. In a new post on X, analyst Ali Martinez discussed how Dogecoin has been forming a familiar pattern in its monthly price.
The chart shared by the analyst depicts the pattern in question, showing that Dogecoin had been stuck inside a long Descending Triangle between 2021 and 2024. The Descending Triangle is a technical analysis pattern that, as its name suggests, looks like a downward-sloping triangle. In this pattern, the price of the asset consolidates between two lines: a bottom level parallel to the time-axis and an upper level that converges towards the bottom level.
Like other technical analysis patterns, the upper level is likely to act as resistance, while the bottom one functions as support. A breakout of either of these lines can imply a continuation of the trend in that direction. From the chart, it’s visible that Dogecoin managed to break above its multi-year Descending Triangle this year.
As the pattern foreshadowed, the surge above the upper level led to a sharp rally, during which the memecoin’s price appreciated by almost 208%. However, since the peak of the run, the asset has experienced a retracement of around 65%. According to the analyst, this development may not actually be negative, as it mirrors events in the past.
In both previous instances, Dogecoin broke out of a multi-year Descending Triangle to observe a sharp rally, followed by a similar scale of retracement as has been witnessed recently. In both cases, the memecoin subsequently entered full-blown bull runs. Based on this historical pattern, Martinez suggests that “after a recent 65% pullback, DOGE could be gearing up for the next big rally!” It remains to be seen how the asset’s price will develop from here and whether a similar rally will follow this time as well.
In other news, whales have shown increased activity on the Dogecoin network recently. The analyst pointed out this rise in activity in another post on X. The increased transactions from large holders could lead to more volatility for Dogecoin, which might result in a net upside if the whales are making these transfers for buying purposes.
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