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An analyst has explained how a Dogecoin monthly close above this level could pave the way for the memecoin to retest its all-time high (ATH).
Dogecoin Is Trading Around The Lower End Of An Ascending Channel
In a new post on X, analyst Ali Martinez has shared a technical analysis (TA) pattern that the monthly price of Dogecoin has been showing recently. The pattern in question is an “Ascending Channel,” which is a type of Parallel Channel.
Parallel Channels form when an asset’s price consolidates between two parallel trendlines. The upper line is likely to provide resistance in the future, while the lower one support. A break out of either of these levels can imply a continuation of trend in that direction.
Parallel Channels can be of three types. The most basic one involves trendlines that are parallel to the time-axis. This case emerges when consolidation happens in a sideways manner.
The other two types form when the asset consolidates at an angle. When this happens in the up direction, the channel forming is known as an Ascending Channel. Similarly, a downward consolidation results in a Descending Channel. In the context of the current topic, the former of the two is of interest.
Since an Ascending Channel represents a phase of net upward consolidation in the price, its upper line connects together higher highs and the lower one higher lows.
Below is the chart shared by the analyst that shows the Ascending Channel that the 1-month price of Dogecoin has been stuck inside for the last several years.
As is visible in the above graph, the 1-month Dogecoin price has recently fallen to the lower level of this long-term Ascending Channel and appears to be slipping under it. If the memecoin now sees a sustained move down, a breakout toward the downside could be confirmed.
In the scenario that it can recover above the lower level of the channel again, however, its path may once again become that charted out by the pattern. The bottom level of the Ascending Channel isn’t the only one that the asset is very close to breaking above; there is also the 0.786 Fibonacci Retracement level.
Fibonacci Retracement levels are based on ratios from the famous Fibonacci series. The 0.786 Fibonacci Retracement line from the chart is situated around the $0.20 price level. The next major level, the 1.000 Retracement, corresponds to DOGE’s ATH of around $0.74.
As Martinez explains,
If Dogecoin $DOGE can secure a monthly close above $0.20, it could pave the way for a rally toward its all-time high of $0.74. Such a breakout would signal strong bullish momentum and potentially attract increased investor interest.
DOGE Price
At the time of writing, Dogecoin is trading around $0.17, up over 9% in the last week.
Featured image from Dall-E, charts from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
