Although the broader cryptocurrency market has been quite in decline lately, with many wondering if it can recover at all, there is a key technical pattern emerging on the chart of Dogecoin (DOGE) that could be the start of a bullish revival.
In his latest analysis, Ali Martinez, a well-known crypto analyst, noted that DOGE has formed a pattern called a falling wedge, which is considered a bullish indicator for an upward breakout after months of price declines and consolidation.
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A falling wedge often leads to significant price movement, when the resistance level is finally broken. Historically, these patterns have been known to produce price increases of between 15% and 25% when the breakout is confirmed. This pattern, which can be seen on the daily chart shared by Martinez, began to form in March after Dogecoin peaked at $0.22.
It has been developing for several months now. While it has been a long time coming, this extended formation time frame usually means that an eventual breakout is more likely to happen.
Source: Ali MartinezWhat now?
Now, at $0.098 - more than 86.5% below its all-time high - the price of Dogecoin is at a critical juncture. While most people on the market believe that DOGE is unlikely to recover anytime soon, Martinez believes that this could be the catalyst that the crypto market needs to reignite its bullish momentum.
If Dogecoin can close above the $0.1 resistance level and hold it, it could be ready for a rally to $0.15. This would be in line with what we have seen in the past with falling wedge breakouts.
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If you are watching the price of DOGE, you need to be patient and precise. Once the breakout above the upper dynamic resistance is confirmed, traders will be able to consider the possibility of an upward rally in the meme cryptocurrency.
