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Dogecoin has observed a rebound from the support line of a Parallel Channel. Here’s where the next target could lie, according to an analyst.
Dogecoin Found Support At Lower Level Of This Channel
In a new post on X, analyst Ali Martinez has talked about how the daily Dogecoin price is currently looking from the perspective of a technical analysis (TA) pattern. The pattern in question is a Parallel Channel, which forms whenever an asset’s price witnesses consolidation between two parallel trendlines. The upper line of the channel tracks successive highs, and the lower one lows.
The cryptocurrency breaking out of either of these levels implies a continuation of the trend in that direction. A surge above the channel is a bullish signal, while a fall under it is a bearish one.
There are three different types of Parallel Channels. The Ascending variation occurs when the trendlines are sloped upwards. That is, it represents a phase of consolidation to the upside. Similarly, the Descending type involves the asset going down with time. In the context of the current topic, the third and most common variant is of interest. This type signifies a phase of true sideways movement, with the channel being parallel to the time-axis.
Now, here is the chart shared by Martinez that shows the Parallel Channel that the 1-day price of Dogecoin has been moving inside for the last few months:
As displayed in the above graph, the Dogecoin daily price recently saw a brief retest of the lower level of the Parallel Channel. This line of the pattern is generally considered a level of support, and indeed, it played this role during the recent retest as well by helping the memecoin to turn around.
DOGE has since been on the way up. According to the analyst, the cryptocurrency is now targeting the $0.19 level, situated at the midway point of the Parallel Channel.
In the event that Dogecoin can clear this level, it’s possible that the coin may set its sights on the $0.26 mark next. This price corresponds to the upper level of the pattern, which provided resistance to the memecoin on a couple of occasions in May.
From the current exchange rate, a surge to this line would imply an increase of more than 50%. It now remains to be seen how the asset’s trajectory would look in the near future and whether the lines of the Parallel Channel would play any part.
DOGE Price
At the time of writing, Dogecoin is floating around $0.172, up over 7% in the last week.
