Currently trading at $0.1115, Dogecoin has continued to build momentum this Monday, extending gains after successfully retesting a key support level last week.
This recovery indicates potential strength as the cryptocurrency remains above its critical price range. Analysts are closely monitoring familiar chart patterns, with some speculating that Dogecoin may be preparing for its next significant rally.
Analyst Ali Martinez has drawn attention to a potential repetition of historical movements, suggesting that Dogecoin could follow a pattern seen in previous cycles.
Historical Patterns Show Potential for Rally
Martinez’s analysis highlights a specific recurring pattern in Dogecoin’s price action. The first instance of this pattern, from 2015 to 2017, saw Dogecoin undergo a 60.53% decline over several months before forming a descending triangle.
Following the breakout from this formation, Dogecoin surged by 229.58%. Similarly, between 2018 and 2020, Dogecoin experienced a 56.20% drop, followed by a breakout and a 138.04% price increase.
The third and most recent pattern occurred from 2021 to 2023, during which Dogecoin retraced by 64.77% before rallying by 207.85%. Martinez suggests that Dogecoin could be on the verge of repeating this pattern once again.
The recent 65% pullback from its March yearly high could set the stage for another breakout, potentially leading to a sizable price surge. Historical data shows that similar pullbacks have often preceded significant rallies.
Additional Insights on Dogecoin’s Movement
Data indicates that large Dogecoin holders accumulated 2.07 billion DOGE over the past week, marking the largest net inflow since January. This significant increase in net flow among large holders signals strong interest from whale investors, which could potentially influence price movement.
Retesting Key Levels
In addition to the historical analysis, Dogecoin’s current price action shows promising signs. Martinez notes that Dogecoin is retesting a breakout from a falling wedge formation.
At the time of Martinez’s post, Dogecoin had been hovering around the broken resistance trendline after a four-day period of downward movement, during which its market cap fell by 20%.
Despite the downturn, Dogecoin held near the psychological level of $0.10, achieving an intraday gain of 1.07%. Meanwhile, as of today, it has seen a more impressive 2% gain, trading at $0.1121.
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