Recently, the price of Dogecoin (DOGE), the largest meme coin by market cap, has struggled alongside the general cryptocurrency market. However, the latest price action displays an exciting and positive outlook for the cryptocurrency.
Renowned crypto analyst Ali Martinez recently shared a fresh insight on Dogecoin, speculating on a forthcoming price rally for the meme token.
The Dogecoin Descending Triangle Formation
Ali Martinez – via a post on the X (formerly Twitter) platform – put forward a $1 price target for Dogecoin. This price projection revolves around the multi-year descending triangle formation on DOGE’s weekly price chart.
The descending triangle is a prominent technical analysis pattern that indicates a bearish market trend. Although it is often a bearish sign that suggests a downward trend breakout, it can also be a significant reversal pattern.
In this particular scenario, the Dogecoin price has been in a continuous downward trend since May 2021. Prior to this sustained bearish run, the cryptocurrency had enjoyed a parabolic climb, with the price of DOGE claiming the $0.7 level (an all-time high) in April 2021.
As already inferred, this positive run was short-lived, with the meme coin dropping to a low of $0.058 in October 2022. While the Dogecoin price has momentarily touched the $0.1 mark a couple of times since then, it currently trades in a range – and around the same $0.058 price.
#Dogecoin is approaching the apex of this multi-year descending triangle formation.
A weekly candlestick close above $0.0835 could trigger the beginning of a new $DOGE bull run, potentially toward $1. Yet, we must watch out for the $0.0482 support, as any sign of weakness… pic.twitter.com/Emcwfyv6cE
— Ali (@ali_charts) October 13, 2023
In the highlighted weekly chart, DOGE’s price is approaching the apex of the descending triangle pattern. Based on this formation, Martinez foresees a significant bullish run for Dogecoin if a weekly candlestick closes above $0.0835.
According to the analyst, this fresh bull run could see the meme coin’s value skyrocket to as high as $1, implying a significant 1,580% rally from the current price point.
Watch Out For This Level, Analyst Says
While the chances of a new bull run seem strong for Dogecoin, the possibility of a fall still lurks. Specifically, Ali Martinez touted $0.0482 as a price level to look out for.
This price zone, which is at the base of the descending triangle, represents a significant support zone. The analyst said any weakness around this area could cause the DOGE price to reach a new yearly low.
As of this writing, Dogecoin is valued at $0.059329, reflecting a 1.7% price jump in the past day. According to CoinGecko data, the meme token’s daily trading volume stands at $163.3 million, representing a negligible 0.2% increase in the past day.
Dogecoin still ranks amongst the 10 largest cryptocurrencies in the market, with a market cap of over $8.3 billion.
Dogecoin price moving sideways on the weekly timeframe | Source: TOTAL chart on TradingView
Featured image from Pexels, chart from TradingView
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Author: Opeyemi Sule
