Having formed a multi-year descending triangle pattern, Dogecoin (DOGE) is at the apex of this drawdown and can potentially print a 1,097% run.
According to top market analyst Ali Martinez, a breakout might be awaiting the altcoin as a bottom is already forming after a long selloff period. In his analysis, Ali presented a two-case scenario in which the coin could soar by 1,097% or recede from its current levels.
Dogecoin Growth Pattern
Since at least April 2021, Dogecoin has been trapped in a descending triangle pattern to date. During this period, Dogecoin recorded several lower highs and lower resistance points.
In the chart accompanying the analyst’s latest insights, Dogecoin recorded a very sharp parabolic run from April 2021, which took its price to peak above $0.6. This rally was short-lived as DOGE began a momentary drop, bringing it to a low of $0.05802 around October 2022.
Dogecoin welcomed another recovery from this point, with the price soaring to a lower high of $0.12 in the 4th quarter of 2022. The asset has been trapped in a range-bound motion since then, with its price at the bottom of the triangle formed over the past years.
Considering its current level, the analyst believes that a weekly candlestick close above $0.0835 will confirm a breakout from this triangle pattern.
Should DOGE record this breakout, a target of $1 is in view, implying a massive 1,097% run from the current level. Dogecoin now trades at $0.05846, up 0.81%, with its trading volume and market cap pegged at $135.97 million and $8.27 billion, respectively.
Potential Downside Slip
While the possibility for this bullish motion is imminent, the analyst also noted that the chances of a fall remain. He said to keep an eye on the $0.0482 support.
This price level marks a pivotal point that can stir a rundown to a new yearly low if any sign of selling weakness plays out in this region.