Analyst Says November to Spark Dogecoin Run, Notes Crucial Level to Watch for Breakout

Market veteran Ali Martinez believes November will introduce a parabolic run for Dogecoin, identifying an important level to watch for possible breakout.

Martinez disclosed this in his latest analysis, suggesting that Dogecoin could enter a parabolic rally in the coming weeks. His analysis focuses on a historical pattern on the 1-month Dogecoin (DOGE) price chart.

Data from the chart reveals repeating setups and breakout signals. Martinez noted that November could be the month to watch, marking an important price level as a potential breakout point.

Dogecoin Historical Descending Triangles

Per the chart, Dogecoin has entered into descending triangle patterns on three different occasions since January 2014. Each of the two past patterns preceded a major breakout, pointing to a potential repetition in Dogecoin’s price trajectory as the third one sets up.

The first descending triangle started forming after DOGE collapsed from the $0.00232 peak in January 2014. The pattern continued for 38 months, about 1,155 days, until Dogecoin launched a breakout in March 2017. The breakout led to a rally of 8,933%, reaching a peak of $0.01877 in January 2018.

The second descending triangle began taking shape as Dogecoin slumped from the $0.01877 peak in January 2018. The correction lasted for 36 months, equating to 1,096 days. However, when a breakout occurred in January 2021, DOGE spiked 15,524% to reach its all-time high of $0.7390 by May 2021.

A Possible Repetition 

Martinez has identified that Dogecoin’s price action in 2024 is showing a similar setup to these past rallies, as it formed a third triangle following the drop from $0.7390. Having consolidated for 42 months, or 1,280 days, Dogecoin has started testing the upper boundary of this descending structure. 

Notably, the current price level sits just above $0.17, close to a critical resistance at $0.20. Martinez identified the $0.20 price level as the important zone to watch. Should DOGE decisively breach this area, it could trigger a new bull run, potentially mirroring the explosive moves seen in the previous breakouts.

Dogecoin is already setting the stage for this upsurge, having recorded an impressive run this month. For context, the meme king is up 48% this October despite the turbulence it faced earlier in the month. 

With DOGE currently changing hands at $0.1690 as of press time, it would need to overcome two major resistance points to record a decisive close above $0.20. The first resistance lies at the $0.1775 level, while the second sits at $0.2003. Beyond this, Dogecoin could aim for $0.2231.