Every Time Dogecoin Forms This Pattern, Price Takes Off: Top Analyst

Dogecoin price could take off from its current position, as a top analyst identifies a historically bullish pattern on the daily timeframe. Dogecoin (DOGE), the largest meme coin by market capitalization, has endured a period of negative price trend since the start of the year, mirroring the broader altcoin market's underperformance. For context, the meme coin is down 42% year-to-date and 75% away from its all-time high. Bullish Trends Underway? Notably, the last three weeks have been positive for Dogecoin. It has rebounded 19% from $0.1514 in mid-June and is on course for its third consecutive weekly uptrend. This week alone, DOGE is up 5%, sparking a meme coin revival. Meanwhile, further bullish developments are emerging from the DOGE/USD chart, according to prominent analyst Ali Martinez, who shared this in a recent commentary. He noted that a bullish pattern has emerged, with a history of price takeoffs for Dogecoin. Specifically, he noted that DOGE is trending within a parallel channel and currently sits at its bottom. The channel has two partitions, one at the lower resistance around June’s high of $0.20, and the other at the higher resistance at May’s high of $0.25.

Citing the historically bullish nature of this price formation, he predicted that Dogecoin could rally extensively from here to two targets. First, he suggests a retest of the lower resistance at $0.20, an area that DOGE has seen multiple rejections this year. For perspective, DOGE faced a massive supply wall around the $0.2 region on March 26, from where it retraced to April’s low of $0.129. The resistance level also prevented further upside on April 26 and most recently on June 11. If DOGE successfully reclaims the $0.20 price mark, it will target the $0.25 resistance. Dogecoin faced a dual rejection from the area in May, an indication of its concentrated supply pressure. Notably, how Dogecoin reacts to this level will determine its near-term trend. Based on the current price, DOGE would need to rally by 9.5% and 36% to reach $0.2 and $0.25, respectively. Interestingly, Martinez also highlighted that a buying spike would catalyze the possible rally. Aligning Dogecoin Price Expectations Martinez’s price outlook aligns with Tom Tucker, who highlighted Dogecoin’s path to $0.25 in a recent analysis. Tucker identified a double bottom price formation on the daily chart, a pattern that typically signals the end of a bearish trend and an impending bullish reversal. Several other analyses hint at this price target, with an analysis from The Crypto Basic recently citing a bullish divergence and growing open interest as major catalysts. Nonetheless, there are far higher targets for DOGE this cycle. For instance, some suggest a rally to $0.46, $1.4, and $4, highlighting Dogecoin’s recurring pattern from previous cycles. A notable analyst, CryptoELITES, insisted that $5 is the threshold for DOGE, and those who do not expect it know nothing. Nonetheless, Martinez earlier highlighted key resistance levels to watch using the UTXO Realized Price Distribution chart. Specifically, some of the levels include $0.18, $0.21, and $0.36 DOGE trades at $0.182 at the time of writing.