One analyst explained that if history repeats itself, Dogecoin could reach $1. Here’s when exactly this can happen in DOGE:
Dogecoin recently broke out of a parallel channel.
new post At X, analyst Ali discussed the potential outcomes for Dogecoin based on historical patterns. Below is the weekly price chart of Memecoin shared by analysts. This shows similar-looking patterns that the assets have followed over the years.
The trend in the weekly price of DOGE over the last few years | Source: @ali_charts on X
As Ali highlights in the chart, prior to the two previous major bull runs, Dogecoin’s weekly price had been consolidating within certain parallel channels for quite some time.
Here, “parallel channel” refers to a pattern in technical analysis (TA) consisting of two parallel trend lines where asset prices are consolidating. Parallel channels can be of various types, such as ascending and descending, but in the context of the present discussion, channels parallel to the time axis are relevant.
The upper trend line in these patterns is drawn by connecting the high points, and the lower trend line is drawn by connecting the low points. If price retests one of these lines, a reversal is more likely.
This means that a retest of the upper line could cause the uptrend to break and the asset to fall. Likewise, the lower line can become a source of support and help the price reverse itself.
However, a breakout of one of these lines may indicate a continuation of the trend in that direction. The graph shows that on the last two occasions, Dogecoin’s weekly price has experienced bullish rallies with breakouts like this in each of the integrated channels.
Over the past few years, DOGE again appears to have gone through a period of consolidation similar to the previous two, and the coin has recently been breaking out.
Ali indicated a potential trajectory that Dogecoin could follow on the charts, based on the precedent set by the last two bull markets. “This may sound harsh, but if history is any guide, Dogecoin $DOGE could reach $1 by mid-April!” The analyst says:
Based on the current cryptocurrency price, this run would mean memecoin would increase by over 488% within a month and a half. Obviously, a rally like this would be very impressive if it played out this way.
It remains to be seen what trajectory Dogecoin follows now that it appears to have broken out of a long parallel consolidation channel.
doji price
At the time of writing, Dogecoin is trading around $0.17, up 36% in the past week.
Looks like the price of the coin has slumped to sideways movement in the last couple of days | Source: DOGEUSD on TradingView
Featured image by Crystal Mapes on Unsplash.com, chart by TradingView.com
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