Dogecoin has repeatedly surged after descending triangle patterns, recently rebounding 200% following a 64% pullback.
Key support for Dogecoin remains at $0.10, while a breakout above $0.14 could push prices toward the $0.35 range.
Technical indicators show mixed signals, with the RSI suggesting upward potential and the MACD showing short-term weakness.
According to Ali Martinez, a crypto analyst on X, Dogecoin may be on the verge of another rally. Martinez highlights that Dogecoin has consistently followed a pattern of breakouts from descending triangles, which have previously led to large price increases. With the recent pullback of 65%, he suggests Dogecoin could be up for another potential bull run.
Historical Patterns Show Potential for a Bullish Move
Martinez pointed out that Dogecoinâs price history reveals a recurring pattern of descending triangles. Over the years, Dogecoin has broken out of these formations, leading to surges of over 200%. For example, after a 60% retracement between 2015 and 2017, Dogecoin's price surged by 229%.Â
Source: ali_charts
Similarly, in 2018-2020, the price dipped by 56% before rising by 138%. More recently, Dogecoin experienced a 64% decline before rebounding by over 200%, pushing the price back to $0.15428.
Key Price Levels to Watch
Dogecoin's recent price action suggests the $0.10 support level is crucial. The token has bounced off this level multiple times, showing its significance. Meanwhile, resistance levels between $0.12 and $0.14 have also become key areas of interest.Â
If Dogecoin breaks above $0.14, previous price trends suggest it could test levels as high as $0.35 in the medium term. However, failure to hold the $0.10 support could result in a retracement to lower levels, potentially near $0.06.
Indicators Show Mixed Signals
Recent technical indicators provide mixed signals. The RSI, currently at 53.28, indicates the market is neither overbought nor oversold, giving room for upward movement.
Source: TradingView
Meanwhile, the MACD shows a bearish crossover, suggesting a short-term weakening of momentum. Despite this, if buying volume increases, Dogecoin could break out of its consolidation phase and test higher resistance levels.