An analyst has explained how Dogecoin could currently be gearing up for the next bull run if historical pattern is anything to go by.
Dogecoin Has Recently Shown Similar Trend To Past Cycles
In a new on X, analyst Ali Martinez has discussed about how Dogecoin has been forming a familiar pattern in its monthly price recently. Below is the chart shared by the analyst, which depicts the pattern in question.
Looks like DOGE has shown similar trend as now twice before | Source:
As is visible in the graph, Dogecoin had been stuck inside a long Descending Triangle between 2021 and 2024. The “Descending Triangle” here refers to a technical analysis (TA) pattern that, as its name suggests, looks like a triangle slopped downwards.
In this pattern, the price of the asset consolidates between two lines: a bottom level parallel to the time-axis and an upper level converging towards the bottom level.
Like other TA patterns, the upper level is probable to act as resistance, while the bottom one as support. Also, a break out of either of these lines can imply a continuation of trend in that direction.
From the chart, it’s visible that Dogecoin managed to find a break above its multi-year Descending Triangle this year and as the pattern foreshadowed, the surge above the upper level led to a sharp rally, in which the memecoin’s price saw an appreciation of almost 208%.
Since the top of the run, though, the asset has witnessed a peak retracement of around 65% so far. This development, however, may not actually be bad, as the analyst has pointed out that the chain of events that Dogecoin has gone through in recent years is in fact similar to what happened on two other occasions in the past.
In both of these instances, DOGE broke out of a multi-year Descending Triangle to observe a sharp rally, followed by a retracement of a similar scale as the one witnessed recently. The memecoin then went on to observe full-blown bull runs in both of these cases.
Based on this historical pattern, Martinez notes, “after a recent 65% pullback, DOGE could be gearing up for the next big rally!” It now remains to be seen how the asset’s price develops from here and whether any similar rally would follow this time as well or not.
In some other news, whales have shown rising activity on the Dogecoin network recently, as the analyst has pointed out in another X .
The value of the metric appears to have been going up in recent days | Source:
This increased activity from the large holders can lead to more volatility for Dogecoin, which could be towards a net upside if the whales are making these transfers for buying purposes.
DOGE Price
At the time of writing, Dogecoin is trading around $0.11, down more than 7% over the last week.
The price of the coin appears to have made some recovery over the last few days | Source:
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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