Crypto analyst Ali Martinez, known as @ali_charts on X, has shared a highly optimistic scenario for the Dogecoin (DOGE) price based on historical price movements and pattern analysis today. Martinez emphasized a repeating cycle in Dogecoin’s market behavior, suggesting a potential for massive gains similar to those observed in previous bull runs.

Dogecoin Price Set To Repeat History?

According to the analysis, Dogecoin appears to be following a consistent pattern where it consolidates within a descending triangle, followed by significant rallies of 140% to 230%. This is typically succeeded by retracements ranging from 56% to 60%, setting the stage for a bull run.

“I haven’t sold one single DOGE. I’ve just been buying! Dogecoin is playing the same pattern we’ve seen before. It consolidates in a descending triangle, sees a 140% to 230% rally, and retraces by 56% to 60% before entering a bull run. So now we just wait!!!” Martinez said via X.

The chart shared by the crypto analyst illustrates a recurring theme in Dogecoin’s trading history. In 2016, DOGE price successfully broke out of a descending triangle pattern, leading to a substantial rally of 229.58%, followed by a significant retracement of 60.44%. This pullback set the stage for the primary bull run surge witnessed in 2017.

Similarly, in 2020, Dogecoin experienced a 138% rise post a breakout from another descending triangle pattern, only to undergo a 59.86% decline subsequently. Nevertheless, this decline cleared the way for yet another remarkable price surge in 2021.

Dogecoin technical analysis

The second wave of price surges for Dogecoin has historically been substantial. Over a four-month period from September 2017 to January 2018, DOGE experienced a near meteoric rise of almost 2,900%, climbing from $0.0007 to $0.0194, following a retracement of up to 60%, as Martinez noted. In the last cycle, from February 2021 to May 2021, Dogecoin rallied approximately 1,700%, escalating from $0.041 to its all-time high of $0.7316.

A rally akin to the 2017-2018 surge —about 2,900%—-could potentially elevate DOGE’s price to around $4 from its current level. Meanwhile, a rally similar to the 2021 increase—about 1,700%—would approximately push DOGE’s price to $2.4. Notably, Martinez’s chart suggests he anticipates a clear break above the $2 mark, although no exact price target has been specified.

Already in March this year, Martinez wrote via X: “I feel my fellow degens have been distracted with the new shiny memecoins, but Dogecoin remains the most important altcoin in this sector. From a technical perspective, DOGE seems to mirror the 2018-2021 pattern. If so, DOGE could be at the very beginning of a massive parabolic bull run!” At the time, Martinez shared a chart which showed that he expects DOGE to exceed $11 in this bull run.

Yesterday, Martinez offered a short-term price forecast for DOGE, stating via X: “It looks like Dogecoin broke out of a wedge, which suggests an upside target of 44%!” According to the chart presented by the crypto analyst, the next key short-term resistance levels for DOGE are positioned at $0.14479, $0.1613, and $0.1844.

It looks like #Dogecoin $DOGE broke out of a wedge, which suggests an upside target of 44%! pic.twitter.com/Tyw7pF9TwG

— Ali (@ali_charts) July 24, 2024

At press time, DOGE traded at $0.1241.

Dogecoin price

Featured image created with DALL·E, chart from TradingView.com

Source and More information: Dogecoin Set For 1,700% Rally, Echoing Past Cycle Trends: Crypto Analyst

Author: NewsBTC.com