An analyst explained that if this pattern continues, Dogecoin could eventually rise by about 6,770%.

Dogecoin has been trading within a long-term ascending channel.

In a new post on X, analyst Ali Martinez discussed the long-term pattern that Dogecoin's weekly price has been in. From a technical analysis perspective, this pattern is an ascending parallel channel.

A parallel channel refers to a consolidation pattern formed when the asset price moves within two parallel trend lines. The upper line is formed by connecting consecutive tops, while the lower line connects the bottoms.

When an asset is within a channel, it may face resistance at the upper line and support at the lower line. Breaking through either of these levels could indicate that the trend will continue in that direction.

There are three types of parallel channels: channels parallel to the timeline, channels with a positive slope, and channels with a negative slope. The first type does not have a specific name, but the latter two do; they are called ascending parallel channels and descending parallel channels, respectively.

Given that these two types of trend lines slope, they correspond to the consolidation phase that occurs when the asset is rising or falling. As shown in the chart shared by the analyst, Dogecoin seems to have been in such a pattern for the past decade.

As seen in the chart, Dogecoin's 1-week price has historically remained within this ascending parallel channel. The most recent retest occurred earlier this year when Dogecoin bounced off the lower line.

As highlighted by Martinez in the chart, Dogecoin's current trend resembles the trends seen in the past two bull market cycles. In each bull market, this cryptocurrency experienced an initial rise, followed by a slight decline, ultimately triggering a real bull market rebound.

In recent weeks, Dogecoin has been declining, which may suggest that it is currently in a descending staircase phase. Based on what has happened in past cycles, Dogecoin may soon begin to rebound and find a peak at the upper part of the ascending channel.

Based on how far it is from the upper limit of the channel, analysts point out that Dogecoin needs to rise 6,770% to reach there. It remains to be seen whether the ascending channel will continue to hold and if a situation similar to historical patterns will occur this time as well.

DOGE Price

At the time of writing, Dogecoin's price was hovering around $0.31, down more than 2% over the past week.

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