Dogecoin, a popular meme coin, has once again set off waves. A recent tweet released by famous analyst Ali Martinez caused a sensation in the Cryptocurrency community, suggesting that DOGE may rise significantly
Dogecoin, a popular meme coin, has once again set off waves. A recent tweet released by famous analyst Ali Martinez caused a sensation in the Cryptocurrency community, suggesting that DOGE may rise significantly.
In a Twitter post that quickly attracted attention, Martinez highlighted an interesting pattern on the monthly chart of Dogecoin. According to analysts, the last time a downward triangle was formed on a weekly chart, DOGE experienced a staggering 23200% increase. Now, as history may repeat itself, Martinez is closely monitoring a key resistance to confirm. As mentioned in the tweet:
"Dogecoin: Last time when a downward triangle was formed on the weekly chart, the Dogecoin rose by 23200%. I will pay attention to the situation that the monthly closing price continues to be higher than $0.80 to confirm."
The journey of Dogecoin is like a roller coaster. As early as January 2018, DOGE reached a historic high of nearly 0.02 US dollars, and then entered a long consolidation phase, forming a downward triangle in the next three years.
However, with the start of a new bull market and the catalysis of Bitcoin momentum, DOGE finally successfully broke through the long-term consolidation pattern and surged to its peak of $0.7588 on May 8th.
One dimensional chart of Dogecoin price analysis
Looking closely at the chart of the first day, it is obvious that Dogecoin is now facing a critical turning point. Will prices try to reverse the trend, or will they continue to decline after a brief pause in bullish activity?
As far as the Dogecoin is concerned, the rising triangle may indicate a reversal of the trend. Due to the hype surrounding Elon Musk's acquisition of Twitter, DOGE reached a local high of $0.1591 on November 1, 2022. Since then, DOGE has been in an obvious downward trend. From November to mid June, DOGE recorded lower highs and lower lows on the 1-day chart.
But since hitting a 13 month low of $0.0536 on June 10th, DOGE has shown signs of an upward trend, forming a so-called rising triangle. This special form belongs to the category of consolidation form, usually indicating the continuation of previous trends after a brief consolidation. However, in special circumstances, such as this one, the rising triangle may indicate a reversal of trend.
When the Dogecoin community eagerly waits for the potential impact of this rising triangle, it is crucial to observe the resistance level in the future. The Dogecoin must continue its upward trajectory and break through the resistance level of 0.075 dollars to confirm this mode. This level has proven to be a formidable obstacle in the past, as the previous three attempts to break through it have not been successful.
If the breakthrough is successful, the first obstacle is at $0.0783, marked by 23.6% Fibonacci's retreat. If DOGE breaks through this resistance level, it may rise to $0.0936, that is, the 38.2% Fibonacci retracement position.
Further bullish targets include $0.1036 (50% Fibonacci retracement), $0.1186 (61.8% Fibonacci retracement) and $0.1363 (78.6% Fibonacci retracement). Ultimately, reaching the previous high of $0.1591 from November 2022 will be the most ambitious goal, although the possibility of increased selling pressure remains a factor to consider at this time.
Currently, falling below $0.07 will invalidate the upward triangle theory. If this happens, the first bearish target may be $0.0636. Then, the annual low of $0.0536 may become the focus.
(Personal opinion, does not constitute investment advice)
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