Dogecoin (DOGE) price has displayed a major set-up that has the potential to trigger an unprecedented rally moving forward.
While most digital currencies are generally unpredictable, some historical trends are likely to resurface again. This is what is happening with Dogecoin, as spotted by a top market Analyst, Ali Martinez.
According to Martinez, with the current ecosystem trend, Dogecoin is displaying a similar pattern as it did in 2020, a trend that, at the time, served as a precursor to a 28,770% rally.
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
Dogecoin to Soar to $24?
In Martinez’s analysis, he presented Dogecoin’s weekly chart that shows a visible descending triangle. Before the 2020 era breakout, Dogecoin slipped from a price of $0.00887 in early January 2018 to a low of $0.002. From here, the coin entered a long consolidation period that lasted until January 2021, when the price returned to $0.00887.
The breakout recorded from this level pushed the meme coin’s price to its All-Time High (ATH) of $0.7376. From this ATH, Dogecoin’s price dropped to a low of $0.05747 over the past year.
As Martinez pointed out, DOGE has already broken out of a Descending Triangle following the more than 8.8% growth it has recorded over the past month. As it stands, the coin is now in the long consolidation phase that might serve as a springboard for the price to soar to $24 should a similar rally as the 2020 cycle resurface.
One Little ‘But’
While the growth potential of Dogecoin cannot be shoved aside, its current circulating supply may serve as the stumbling block for it to hit this massive price target.
A $24 price tag at the current circulating supply of 143,192,426,384 DOGE will place the market capitalization at $3,436,618,233,216, a figure that appears relatively unrealistic for an asset with little intrinsic value compared to Bitcoin (BTC). At the moment, DOGE is worth $0.0841 and has a market capitalization of $12,040,841,041, showing the massive change the $24 mark will bring.
Nonetheless, the DOGE community is enthusiastic about what the future holds, with the $1 price mark remaining the key goal in the long term.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
