- One crypto analyst has come forward suggesting that Dogecoin may be gearing up to repeat a pattern that has historically led to large price surges.
- In addition, data suggests a growing bullish sentiment for Dogecoin, as large holders have accumulated 2.07 billion DOGE in the past week.
Dogecoin, like its memecoin counterparts, is on the path to resurgence despite a rocky start to the month. Specifically, DOGE is swapping hands with $0.1075 marking a 3.75% and 9.31% decline in the last 24 hours and past week respectively. Additionally, DOGE’s market cap has seen a 6.5% decline stopping at $15.5 billion.
Yesterday, Dogecoin’s (DOGE) price surged by nearly 7% all the way to $0.115 with its market cap soaring past $16.3 billion. Commencing the week with gains has sparked heightened speculations about a potential rally.
Along these lines, Crypto pundit Ali Martinez via a post on the X platform, has drawn attention to historical trends in Dogecoin’s price movement. Ali Martinez seems to think that the digital asset may be on the brim of repeating a pattern that has historically led to significant price surges.
History often repeats itself, and #Dogecoin might be doing just that.
A familiar pattern: breakout from a multi-year descending triangle, 200% surge, 60% retracement—then a bull run.
After a recent 65% pullback, $DOGE could be gearing up for the next big rally! pic.twitter.com/c93A4Fec7V
— Ali (@ali_charts) October 6, 2024
According to Martinez’s chart, there is a recurring descending triangle pattern in Dogecoin’s price movement. Notably, this pattern has been followed by significant price increase.
From 2015 to 2017, Dogecoin experienced a 60.53% decline before forming a descending triangle. After breaking out from this formation, the price surged by an impressive 229.58%.
In another occurrence, between 2018 and 2020, Dogecoin dropped by 56.20%, followed by a breakout that saw a 138.04% rise.
The most recent instance of this pattern occurred between 2021 and 2023 when Dogecoin retraced by 64.77% before rallying by 207.85%. Martinez believes that the current market conditions could see Dogecoin following a similar trajectory once again.
Dogecoin’s recent 65% decline from its March peak might be a setup for a significant rally. Historically, such pullbacks have often preceded major price surges, suggesting that Dogecoin could be poised for a substantial upward move.
In addition, data suggests a growing bullish sentiment for Dogecoin, as large holders have accumulated 2.07 billion DOGE in the past week. In fact, this is the largest net inflow since January, indicating significant whale interest. Whale activity often precedes major market shifts, so this accumulation could influence price movement.
Dogecoin’s Technical Analysis
Based on recent price action and technical indicators, Dogecoin appears poised for a potential price increase. The cryptocurrency has been trading above its Volume Weighted Average Price (VWAP) and is nearing its 200 Exponential Moving Average (EMA).
Historically, DOGE has exhibited strong upward momentum when it maintains positions above both the VWAP and 200 EMA. The last time this occurred was in March of this year, resulting in a remarkable 172% surge.
Currently, DOGE is trading just below the 200 EMA, which is currently at $0.11725. If the price can close above this level, analysts believe it could trigger a significant short-term price increase.
