The price of the OG meme coin Dogecoin (DOGE) has been in limbo for some time now, but the impasse might be nearing its end before the next major rally kicks off.
According to renowned crypto investor and technical analyst Ali Martinez, Dogecoin could be repeating history, hinting at an upcoming bullish breakout for the cryptocurrency.
Time For A 200% Dogecoin Rally?
Analyst Ali Martinez has made an ultra-bullish prediction for Dogecoin.
In a recent post on Twitter (aka X), Martinez noted that the foremost meme coin’s current price behavior mirrors a pattern from the past, particularly a multi-year descending triangle formation.
Whenever this pattern appears, it is accompanied by at least a 200% price rally. However, a 60% retracement followed before DOGE entered an even bigger bull run.
The repeated appearance of this descending triangle pattern implies a potential bullish breakout for the meme coin is on the horizon. Martinez noted that the DOGE price has already undergone a 65% pullback. As such, the pundit believes the meme coin could be preparing for its “next big rally.”
The accompanying chart, which Martinez shared in his analysis, showed that Dogecoin registered a 229.58% rally in 2017, rising to $0.00035 after breaking out of the key descending triangle formation. Similarly, DOGE broke out of the same triangle pattern between 2018 and 2021, resulting in a 138.04% rally, which propelled its price to $0.00318.
History often repeats itself, and #Dogecoin might be doing just that.A familiar pattern: breakout from a multi-year descending triangle, 200% surge, 60% retracement—then a bull run. After a recent 65% pullback, $DOGE could be gearing up for the next big rally! pic.twitter.com/c93A4Fec7V
— Ali (@ali_charts) October 6, 2024
Following Dogecoin’s latest descending triangle pattern, which started forming in 2021 and has persisted throughout 2024, Martinez envisions a 207.85% price upsurge.
At press time, DOGE was trading hands at around $0.1077 after several unsuccessful attempts to break through the crucial $0.11 level. An over 200% gain would push the price to $0.2236 — a level not seen since December 2021.
DOGE’s Fundamental Outlook
Beyond the technical pattern, Dogecoin’s fundamental metrics also offer valuable insights into its potential trajectory.
Data tracked by IntoTheBlock shows that large Dogecoin whales have stockpiled roughly 2.07 billion DOGE over the past week alone. The crypto analytics firm reveals that this is the largest accumulation since January. An accompanying chart indicates that the billions of DOGE were purchased between Sept. 30 and Oct. 5.
Large Dogecoin holders accumulated 2.07 Billion $DOGE last week, the highest since January of this year! pic.twitter.com/AOpdGHzGTe
— IntoTheBlock (@intotheblock) October 7, 2024
Crypto analysts often use the buying patterns of large-volume investors to estimate the sentiment around the underlying asset. Whale transactions can substantially influence an asset’s price due to the large amount of capital. That being said, Dogecoin whales could provide the firepower needed for a DOGE price breakout in the foreseeable future.
