The analyst explained how Dogecoin could end up witnessing a rally around 6,770% if this pattern continues to follow the meme coin.
Dogecoin has been trading Inside a Long-Term Uptrend Channel
In a new post on X, analyst Ali Martinez discussed the long-term pattern that Dogecoin’s weekly price has been trading within. The pattern in question is the Ascending Parallel Channel from technical analysis.
A Parallel Channel refers to a constructive consolidation pattern where the price of an asset moves between two parallel lines. The upper row is made by connecting consecutive peaks, while the lower row connects to the bottom.
Although the asset is within the channel, it may face resistance on the upper line and support on the lower one. A break of any of these levels would indicate a continuation of the trend in that area.
There are three types of Parallel Channels: those parallel to the time axis, those with a positive slope, and those with a negative slope. The first kind has no specific name, but the last two do; are known as the Ascending and Descending Channels, respectively.
Given how these two types have inverted lines, they correspond to phases of asset consolidation that occur at the top or bottom. Dogecoin appears to be moving within one such pattern over the past decade, as the chart shared by the analyst shows.
From the graph, it can be seen that the 1-week price of Dogecoin has been stuck within this Corresponding Uptrend Channel throughout its history. The most recent reassessment occurred earlier this year when DOGE experienced a rebound from the bottom line.
As Martinez highlighted on the chart, the current DOGE trend is reminiscent of the trend seen during the last two bull cycles. In each of these bull games, the cryptocurrency saw an initial upward burst followed by a small decline that led to a bull rally in the right direction.
Over the past few weeks, Dogecoin has been on a downward trend, perhaps indicating that it is currently in a downward spiral. Going by what happened next in the previous cycles, it is possible that the meme coin will soon start a rally that will find its peak at the high level of the Ascending Channel.
Based on how far the channel high is currently, the analyst noted that it will take Dogecoin a 6,770% rally to reach there. Now it remains to be seen if the Ascending Channel will continue to hold onto the meme coin and if anything like history will happen this time around.
DOGE price
At the time of writing, Dogecoin is floating around $0.32, up more than 2% in the past seven days.
