Analyst Thinks Dream Milestone Could Be Hit In Coming Weeks

Analysts explained how the pattern forming in Dogecoin price could signal a rise to $1 if past trends repeat this time.

Dogecoin’s 1-week price seems to be forming a classic pattern

new post At X, analyst Ali argued that DOGE seems to be exhibiting the classic pattern again in weekly prices. This trend involves a technical analysis (TA) pattern called the “Descending Triangle,” which, as the name suggests, is shaped like a triangle.

This pattern involves two trend lines between which the price of the asset consolidates. One of them is a downward sloping line and the other is parallel to the time axis. This characteristic of price converging downward as it moves through the pattern is why it has descending in its name.

Similar to other TA consolidation patterns, the upper line of the descending triangle also provides resistance to the product, increasing the likelihood of upside formation there. Similarly, the lower line acts as a support point and helps the price reverse upwards.

Breaking out of either of these lines could result in a continuation of the trend in that direction. This means that a breakout above the triangle could be a bullish signal, while a breakout below it could suggest that bearish momentum is prevailing.

Similar to the descending triangle, TA also has an ascending triangle. This is very similar to that, except that the parallel axes connect the tops to create the top line, and the bottom line rises as it connects higher lows.

Here, the chart shared by Ali highlights the pattern that DOGE’s 7-day price has been forming recently.

The classic pattern that DOGE seems to have formed before in its history | Source: @ali_charts on X

From the graph, we can see that Dogecoin’s weekly price has been trading within a long descending triangle since 2021 until this year, but the meme coin found a break earlier and has recorded a notable rise since then.

However, recently, cryptocurrencies have reached a plateau stage. However, this may not be entirely a bad thing. DOGE has seen similar trends in the past, with descending triangles breaking and then consolidating.

As seen in the chart, the previous two such formations led to Dogecoin’s tremendous growth. Therefore, if this historical pattern continues to hold, the latest predictions could also prove to be bullish.

“Based on historical trends, DOGE could surge towards $1 in the coming weeks,” Ali explains. Based on the current spot price, such potential upside would represent a whopping 525% growth for the coin.

doge price

The price trend of Dogecoin has been quite stagnant since the price crashed earlier this month, as the price of Dogecoin is still trading around $0.16.

dogecoin price chart

The price of the asset appears to have been moving sideways since the drawdown | Source: DOGEUSD on TradingView

Featured image from Kanchanara on Unsplash.com, Charts from TradingView.com

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell, or hold an investment, and investing naturally involves risk. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.

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