Dogecoin (DOGE) has slipped out of the top 10 list of most valuable cryptocurrencies again, with its price dropping 1.77% to $0.08395. Despite this decline being less severe than last week’s, Dogecoin has seen positive growth over the past month, in line with market analyst Ali Martinez’s predictions.
Analyst Martinez shared a chart depicting Dogecoin’s historical trends, noting similarities to patterns observed in 2020. Back then, Dogecoin broke out from a descending triangle, underwent a consolidation phase, and eventually surged by a whopping 28,770%.
Dogecoin’s Potential for Parabolic Surge
Currently, Dogecoin has broken out of its descending triangle pattern and is in a sustained consolidation phase. Analysts speculate that if the historical trend repeats itself, the meme coin could experience another parabolic upsurge in the long term.
The price action of #Dogecoin is showing familiar patterns reminiscent of its 2020 behavior. Back then, $DOGE broke out from a descending triangle, entered a period of consolidation, and then skyrocketed by 28,770%.
Currently, #DOGE appears to be mirroring this pattern: having… pic.twitter.com/69yXnlYRJd
— Ali (@ali_charts) February 23, 2024
Should Dogecoin follow a growth pattern similar to the 2020 cycle, it could potentially reach as high as $24. However, given its significant supply, this price may be unrealistic. Nonetheless, for members of the Doge Army, the primary objective remains breaching the $1 benchmark, which would be considered a satisfactory achievement in the upcoming bull run.
Dogecoin’s Reliance on Market Fundamentals
Despite its widespread popularity, Dogecoin’s growth is primarily driven by limited use cases. This reliance on sentiment, often influenced by Elon Musk’s comments and memes, has left Dogecoin vulnerable. With Musk’s influence waning, Dogecoin’s fate now rests on broader market fundamentals.
One such fundamental driver is the emergence of spot Bitcoin ETFs and the overall growth of the cryptocurrency market. The continued hype surrounding ETFs could significantly impact altcoins correlated with Bitcoin. For coins like Dogecoin, which lack strong fundamentals, the potential for upside remains substantial in such market conditions.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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