According to U.Today, crypto analyst Ali recently tweeted about a potential breakout scenario for Dogecoin (DOGE), the largest dog-themed cryptocurrency by market capitalization. Despite a 40% drop in April and a slow start in May with a 3.39% decrease, the current price activity of Dogecoin has caught the attention of traders and analysts. Ali suggests that the 47% fall in Dogecoin's price could be a healthy retracement, setting the stage for a potential bull run following a breakout from a descending triangle pattern.
The descending triangle pattern, marked by lower highs and horizontal support levels, often indicates a consolidation period followed by a breakout. Given Dogecoin's history, this breakout could be particularly significant. Ali provides examples from 2017 and 2021 to support his prediction. In 2017, DOGE broke out of a descending triangle, retraced by 40%, and then entered a 982% bull run. In 2021, a similar pattern occurred with Dogecoin breaking out of a descending triangle, retracing by 56%, and then rising by a massive 12,197%.
Fast forward to 2024, and Dogecoin has once again broken out of a descending triangle and is currently experiencing a 47% price correction, similar to past cycles. This could potentially set the stage for a significant bull run, propelling Dogecoin to new highs. However, it's important to note that these are predictions and the cryptocurrency market is unpredictable. Past performance does not guarantee future outcomes. Whether Dogecoin will reach new highs remains uncertain. At the time of writing, Dogecoin was up 2.93% in the last 24 hours to $0.128, reflecting the general market rebound after a slump at the start of May.