In a recent post on X, analyst Ali Martinez discussed the next direction for Dogecoin based on the pattern observed in previous bullish markets. Below is the chart shared by the analyst, showing that DOGE's price has once again shown the familiar trajectory in its monthly pricing.
From the chart, it can be seen that Dogecoin has been trading within a Descending Triangle pattern for the past few years, but the coin seems to have recently found a breakout from this pattern. The Descending Triangle is a pattern in technical analysis (TA), as its name suggests, resembling a downward-sloping triangle. Overall, the bottom line of the triangle provides support for the asset's price, while the top line may be a source of resistance.
Breaking out of any of these lines could signal the continuation of the trend in that direction. Therefore, breaking above the level, similar to what the memecoin has seen recently, could lead to bullish outcomes.
As Martinez highlighted in the chart, this is not the first time Dogecoin has experienced a long-term consolidation phase within a Descending Triangle. It seems that two previous patterns also saw this cryptocurrency achieve a breakout in an upward direction.
Both of these breakouts led to a strong bullish run for the coin, so it is likely that the most recent bullish run is the start of something similar. Regarding how high DOGE could rise this time, the analyst mentioned Fibonacci levels. These levels are based on different ratios from the popular Fibonacci sequence. The first bullish run peaked around the Fibonacci 1.618, corresponding to the famous golden ratio found in many natural forms.
The second bullish run saw this cryptocurrency make a larger leap, with the peak reaching around 2.272 measured from the peak of the most recent rally (corresponding to 1.000).
Based on these peaks, Martinez believes that the peak of the next Dogecoin rally could lie somewhere between these two levels. Compared to the peak of the most recent rally, the lower cut-off of 1.618 corresponds to around $3.95, while the upper cut-off of 2.272 corresponds to around $23.26.
If Dogecoin can reach this first target, its price will grow over 1,310% from the current level.
