Dogecoin (DOGE) is one of the most watched altcoins in the digital currency ecosystem, and its current outlook has positioned it among the most likely for a bullish breakout. At the time of writing, Dogecoin is priced at $0.1705 after amassing a total of 12.55% in the past 24 hours.
According to top market analyst Ali Martinez, Dogecoin might be making a move to retest its highest price level of $0.2 in more than a month. To support this thesis, Martinez shared a chart that shows DOGE’s breakout from a Descending Triangle pattern. With several confirmations after this breakout, the coin has faced a significant retracement across the board.
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With the latest correction, a price trend or reversal is likely, setting the course for DOGE to retest the resistance level at $0.2. While Martinez is not completely confirming a rebound, he said history does not always repeat itself, but it often rhymes.
History doesn't repeat itself, but it often rhymes!! https://t.co/qr9BG5QnjH
— Ali (@ali_charts) May 21, 2024
For Dogecoin, the $0.2 price mark accounts for one of the toughest resistances to break. The short-term selling pressure begins to build up around this price range, fueling a drawdown the market has yet to break free from for more than four weeks.
The general market sentiment at the moment is bullish, and Dogecoin may ride the tide to sustain its current growth. For the meme coin to hit the $0.2 price mark, it would have to grow by an additional 17% from its current level. Judging by the whale transaction boom, hitting this milestone in the short term is feasible as a supply crunch is gradually being introduced.
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The sentiment surrounding the potential spot Ethereum ETF approval this week is also likely to drive the price of Dogecoin, alongside other meme coins, to a new high. Beyond the $0.2 short-term target, the coin’s long-term target is pegged at $1.