An analyst has explained that Dogecoin could potentially reach $1 if history repeats itself. Here’s when exactly this could happen for DOGE.
Dogecoin recently broke out of a parallel channel
In a new after on X, analyst Ali discussed a possible outcome for Dogecoin based on the historical pattern. Below is the chart for the weekly price of the memecoin, shared by the analyst, which reveals a similar apparent pattern that the asset has followed over the years.
The trend in the weekly price of DOGE over the last few years | Source: @ali_charts on X
As Ali highlighted in the chart, before both of the previous two major bull runs, Dogecoin’s weekly price consolidated within a specific parallel channel for a notable amount of time.
The ‘parallel channel’ here refers to a pattern in technical analysis (TA) that consists of two parallel trend lines within which the asset’s price consolidates. Parallel channels can be of different types, such as ascending and descending channels, but in the context of the current discussion, channels parallel to the time axis are relevant.
The upper trend line in such a pattern is drawn by connecting the tops, while the lower line connects the bottoms. When price retests one of these lines, a reversal is more likely.
This means that a retest of the top line could break the uptrend and cause the asset to experience a decline. Likewise, the bottom line can be a source of support and cause the price to move back up.
However, a break from any of these lines could imply a continuation of the trend in that direction. The chart shows that when Dogecoin’s weekly price saw these types of breakouts from the respective consolidation channels the past two times, bull rallies occurred.
Over the past few years, it appears that DOGE has once again gone through a similar period of consolidation as the previous two, and recently the coin has broken out.
Ali has highlighted a potential trajectory that Dogecoin could follow in the chart based on the precedent set by these last two bull runs. “This may sound wild, but if history is any guide, Dogecoin is $DOGE could reach $1 by mid-April!” says the analyst.
Judging by the current cryptocurrency price, such a run would suggest an increase of over 488% for the memecoin in less than a month and a half. It’s clear that a rally like this would be super impressive if it played out like this.
It remains to be seen what trajectory Dogecoin will follow now that it has seemingly broken away from its long parallel consolidation channel.
DOGE Award
Currently, Dogecoin is trading around $0.17, up 36% in the past week.
Looks like the price of the coin has slumped to sideways movement in the last couple of days | Source: DOGEUSD on TradingView
Featured image by Crystal Mapes on Unsplash.com, charts from TradingView.com
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