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The Dogecoin (DOGE) price has remained in limbo for a while, but the stalemate might be counting down the days until its next major breakout. According to market analyst Ali Martinez, Dogecoin’s history might be about to play out again.
What is Dogecoin up to?
The digital currency showcases a familiar pattern: a breakout from its multi-year descending triangle. Whenever this pattern emerges, it is accompanied by at least a 200% price rally. Afterward, a 60% retracement is recorded before a massive bull rally is recorded.
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Dogecoin has just completed the second leg of this trend, after which it recorded a 65% retracement. Ideally, a bull rally is expected. However, the coin may settle for at least a 200% rally in the midterm.
Per Martinez’s chart, this trend dates back to 2015, with three rounds recorded since then. Although past performance does not necessarily imply future results, many trends in the DOGE life cycle, including whale adoption, are often similar.
As of this writing, the coin’s price has increased 2.55% in 24 hours and is pegged at $0.1118. A 200% increase will push the price to $0.2236, a level that has not been seen since at least mid-December 2021.
Not linear ride
Despite clear historical formation, Dogecoin may have a different linear rally than projected. This is because the broader crypto market is in a consolidation mode and not in a breakout phase.
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Notably, the meme coin ecosystem is seeing a notable shift from the dominant alternatives, DOGE and Shiba Inu (SHIB). New networks like Sui are turning out more promising options, which might compete with DOGE, SHIB, PEPE and WIF in the long term.
Dogecoin is also a meme coin without strong internal ecosystem fundamentals that may help print a solo ride. However, the Elon Musk association presents a mild assurance that DOGE may secure the promo it needs to rally soon.
