Once the pattern is established, Dogecoin (DOGE) will see a 6770% astronomical increase!
Dogecoin's weekly price has long exhibited a specific pattern. From a technical analysis perspective, this pattern can be viewed as an ascending parallel channel.
A parallel channel refers to a consolidation state formed by asset prices fluctuating between two parallel trend lines, where the upper line connects consecutive highs and the lower line connects lows. When the asset price is within the channel, it is subjected to resistance from the upper line and support from the lower line. Once it breaks through either boundary, the trend will continue in the direction of the breakout.
Parallel channels can be divided into three types: channels that are parallel to the time axis without specific names, as well as channels with positive and negative slopes, the latter two being referred to as ascending parallel channels and descending parallel channels, respectively. Due to the inclination of the latter two types of trend lines, they correspond to the consolidation phase of asset price fluctuations.
The chart shows that Dogecoin's price has been within an ascending parallel channel over the past week. Earlier this year, it experienced a retest when the price rebounded strongly from the bottom. Currently, Dogecoin's trend is similar to the trends observed in the previous two bull markets. In past bull markets, Dogecoin typically rises first, followed by a slight pullback, ultimately leading to a significant rebound.
In recent weeks, Dogecoin has been on a downward trend, seemingly in a bearish phase. Based on the historical cyclical trend, it may soon hit bottom and attempt to rally towards the upper point of the ascending channel. Based on the current distance to the upper limit of the channel, Dogecoin needs to rise 6770% to reach the limit. Whether the ascending channel can be sustained and whether history can be replicated still requires further observation.
As of the time of writing, Dogecoin's price hovers around $0.32, with an increase of over 2% in the past seven days.
