Dogecoin To Rally 6,770% If This Pattern Holds: Crypto Analyst

Keshav Verma

5 months ago

2 mins read

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An analyst has explained how Dogecoin could end up witnessing a rally of around 6,770% if this pattern continues to follow for the meme coin.

Dogecoin Has Been Trading Inside A Long-Term Ascending Channel

In a new post on X, analyst Ali Martinez discussed a long-term pattern in which the weekly price of Dogecoin has been trading inside. The pattern in question is the Ascending Parallel Channel from technical analysis.

A Parallel Channel refers to a consolidation pattern that forms when the price of an asset moves inside two parallel trendlines. The upper line is made by joining together successive tops, while the lower one connects bottoms.

While the asset is inside the channel, it’s likely to face resistance at the top line and support at the bottom one. A break out of either of these levels could imply a continuation of the trend in that direction.

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 type doesn’t have a specific name, but the latter two do; they are known as the Ascending and Descending Parallel Channels, respectively.

Given how these two types have slopped trendlines, they correspond to phases of consolidation in the asset occurring to the upside or downside. Dogecoin has appeared to have been traveling inside one such pattern over the past decade, as the chart shared by the analyst shows.

Dogecoin Ascending Channel — The weekly price of the coin seems to have bounced off the lower line recently | Source: @ali_charts on X

From the graph, it’s visible that the 1-week price of Dogecoin has been stuck inside this Ascending Parallel Channel throughout its history. The most recent retest occurred just earlier in the year when DOGE found a rebound off the bottom line.

As Martinez has highlighted in the chart, DOGE’s current trajectory is reminiscent of the trend witnessed during the last two bull cycles. In each of those bull runs, the cryptocurrency saw an initial upward burst followed by a small decline that led to the bull rally proper.

Over the last few weeks, Dogecoin has been going down, perhaps indicating that it’s in that stepping-stone decline phase right now. Going by what happened next in the past cycles, it’s possible the meme coin would soon start a rally that would find its top at the upper level of the Ascending Channel.

Based on how far away the channel’s upper level currently is, the analyst has noted that it would take Dogecoin a rally of 6,770% to reach there. It now remains to be seen if the Ascending Channel would continue to hold for the meme coin and if anything similar as in history would take place this time around as well.

DOGE Price

At the time of writing, Dogecoin is floating around $0.32, up over 2% in the last seven days.

Dogecoin Price Chart — Looks like the price of the coin has been moving sideways in recent days | Source: DOGEUSDT on TradingView

Featured image from Dall-E, charts from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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