Dogecoin price shot down 2.39% compared to 24 hours ago, as technical analysis shows the coin has maintained its high ground to break with the bulls.
As analysts show, a Dogecoin price surge to 120% soon seems possible. If Dogecoin repeats history, there is the potential for another monster bull cycle out of this pump.
Dogecoin Price Charts Signal Potential Rally
Historically, Dogecoin presents cyclical patterns that are not ambiguous. Dogecoin often breaks out of Ascending Wedge formations, classic bullish formations in Technical Analysis.
The first chart below shows that. Historically, these breakouts have caused explosive price rallies and new all-time highs (ATHs).
The chart shows Dogecoin’s knack for recovering from prolonged consolidation periods. For instance, in 2017 Dogecoin broke out of a massive descending wedge and thereafter had a price rally of over 1,000%.
In 2021, the same patterns were seen in which the hotspot season completed with Dogecoin at its ATH of $0.7376 during a market wide crypto boom.
Dogecoin seems to be shaping up another descending wedge, just like before. This could mean the cryptocurrency will see another bullish breakout if this pattern continues.
Technical analysts say that such formations primarily denote a green light for a change in the trend, i.e., a reversal of the downward trend.
This usually gives a price an impetus for a strong surge higher. According to historical data, Dogecoin is next in line for exponential growth, so analysts claim that Dogecoin could rally 120%in the near term isn’t far off.
It’s currently $0.3311, down 2.39% in 24 hours. The trading volume across the same period has likewise fallen by almost 11%, hinting at declining market activity.
However, Dogecoin continues to crack the list of top cryptocurrencies, with a market cap of $48.86 billion and 7th place as the largest digital asset.
Technical Analysis: Falling Wedge Suggests Breakout
The subsequent chart charts out Dogecoin’s performance on an hourly basis, showing a falling wedge pattern.
Those tend to result in bullish reversals. This is formed when the price drops within the converging trend lines, indicating the down-bearish trend is losing strength.
When the price breaks above the upper trendline, it initially often means the start of an upward movement.
The falling wedge shows a breakout target of around $0.36 (roughly a 9% gain from today’s price) for Dogecoin.
Though a modest crawl by the coin’s historic standards, this could be a stepping stone for greater bullish momentum.
This outlook is supported by the average directional index (ADX) at 31, showing a strong trend. Watching the ADX on the chart means the bearish trend is losing strength, a sign of a breakout.
When we zoom out to the big picture, the analyst’s prediction about the ongoing downtrend supports the above short-term analysis.
The long-term trend for Dogecoin suggests it feeds on consolidating with a sharp upward move. Therefore, the foundations for a massive rally are now in market conditions.
