Dogecoin targets a potential 1,503% rally amid recent observation of a breakout from a descending wedge pattern with targets above $2
While Dogecoin has notably fallen by over 6% today, hovering around $0.1248, market data now suggest a bullish reversal could be on the horizon.
In a recent post on X, analyst Ali Martinez highlighted that Dogecoin is breaking out from a descending wedge pattern, suggesting an imminent upside potential for the meme coin. Martinez’s analysis included 12-hour chart patterns for Dogecoin, which now depicts that DOGE has broken a downtrend that commenced since its Q1 bull rally.
Dogecoin Short-term 44% Price Surge
The pattern features two converging trend lines, with the price trending downward, ultimately forming a symmetrical triangle.
According to Martinez’s observation, the breakout from this wedge indicates a potential short-term upward price movement that could add $0.05590 to the current price. Specifically, he expects Dogecoin to rally by 44% soon to reach $0.1844.
It looks like #Dogecoin $DOGE broke out of a wedge, which suggests an upside target of 44%! pic.twitter.com/Tyw7pF9TwG
— Ali (@ali_charts) July 24, 2024
Dogecoin Could Rally to Above $2
In a subsequent update, Martinez shared a Dogecoin chart with a caption expressing his confidence in the meme coin’s prospect. Martinez disclosed that he has continued to amass DOGE without selling for a while now. His observation of historically bullish patterns on Dogecoin fuels his confidence in the meme coin.
The weekly chart accompanying the update illustrates three distinct descending triangle patterns in DOGE’s price history. Each pattern has led to significant rallies and subsequent retracements.
For instance, after the first formation of the triangle pattern in the 2015-2016 cycle, Dogecoin saw a 229.58% rally, followed by a 60% retracement.
In the second emergence (2018-2021), Dogecoin experienced a 138.04% rally before a 56.20% retracement. Meanwhile, in the current triangle formation, which spans 2022 to the present, Dogecoin saw a 207% surge in Q1 2024 but has crashed by 60%.
Now, Martinez envisions Dogecoin rallying toward $2 in the next resurgence. With a current value of $0.1247, Dogecoin would need to surge approximately 1,503% to reach $2.
I haven't sold one single $DOGE. I've just been buying!#Dogecoin is playing the same pattern we've seen before. It consolidates in a descending triangle, sees a 140% to 230% rally, and retraces by 56% to 60% before entering a bull run.
So now we just wait!!! pic.twitter.com/YKtOYJd638
— Ali (@ali_charts) July 25, 2024
DOGE Retests a Macro Downtrend
Martinez’s observation of a potential pattern reversal in Dogecoin’s movement is echoed by other market analysts. An analysis by Rekt Capital also confirmed that Dogecoin is resisting its major downtrend line, establishing support for a potential uptrend.
A few months ago, DOGE broke out from its long-term downtrend originating from its 2021 peak, reaching a multi-year high of $0.2054 on March 5. While Dogecoin has lost most of these gains, these analysts expect a significant rebound soon.
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