Dogecoin’s price action seems to do just that have turned bearish after a bearish close around April. Projections for the meme cryptocurrency are not bullish in it in the short term, especially considering that it is now experiencing a 47% price correction from the high in the current market cycle. Despite the recent plunge, one analyst believes that all is still well with Dogecoin, and that the crypto asset is only gearing up for a bull run into new price areas.
Dogecoin repeats behavior of 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 a highly 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 the massive breakout in 2017 and 2021.
Specific, Dogecoin broke out of a descending triangle pattern in the last quarter of 2023, a seemingly common trend and a first step for the cryptocurrency. As Martinez noted, the first time this breakout occurred was in 2017. However, DOGE underwent a 40% correction shortly afterwards before resuming a 982% bull run. Once again, a similar descending triangle breakout in 2021 saw the crypto rebound 56% before skyrocketing 12,197% to reach its current all-time high of $0.7316.
Now, in 2024, #DOGE has broken out of a descending triangle again!
It is currently undergoing a 47% price correction, similar to previous cycles, which could fuel the next one $DOGE running of the bulls! pic.twitter.com/ZmuHmvIwei
— Ali (@ali_charts) May 1, 2024
Now the recent DOGE correction in the past month, after the breakout of a descending triangle means the crypto could be preparing for a similar rebound. According to the DOGE price chart shared by Martinez, the first step is to break the resistance at $0.224. If it can overcome that level, it will open a run back to the 2021 high and a push up to an initial target of around $1.2.
Looking further out, Martinez’s chart shows an ultimate price increase above $6 in this bull cycle. For this to happen, Dogecoin would need to regain momentum and rise more than 4,700% from current levels in the coming months. While this price may seem too high, Dogecoin has pulled off epic rallies before, surging more than 12,000% in 2021 alone.
It’s only 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 16.92% over the past seven days. Trading volume has increased by 50% in the last 24 hours, signaling 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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