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An analyst has explained how Dogecoin could observe a significant rally next if its price can hold the bottom level of this pattern.
Dogecoin Is Currently Testing The Lower Bound Of An Ascending Channel
In a new post on X, analyst Ali Martinez has discussed about a long-term pattern forming in the weekly price of Dogecoin. The pattern in question is the “Ascending Channel” from technical analysis (TA), which is a type of Parallel Channel.
A Parallel Channel is a consolidation pattern in which the price of the asset remains locked between two parallel trendlines. The upper level of the channel is likely to provide resistance, while the lower one can be a point of support.
Breaks out of either of these lines can imply a continuation of trend in that direction. That is, an escape above the channel is bullish, while a drop under it is bearish.
Parallel Channels can be categorized into three types, based on the alignment of the trendlines with respect to the coordinate axes. Channels that are slopped upwards (that is, those that have trendlines that follow higher lows and higher highs) are known as Ascending Channels. While an asset is inside this type of channel, its price witnesses consolidation to the net upside
Similarly, those of the opposite orientation are called Descending Channels and represent consolidation to the net downside. The third case, where the trendlines are parallel to the time-axis, has no special name.
Now, here is the chart shared by the analyst, that shows an Ascending Channel that the weekly price of Dogecoin has been trading inside for the past decade:
As is visible above, the 1-week Dogecoin price has witnessed a sharp decline recently and is nearing in on the lower level of the channel situated at $0.16. The last time that the memecoin retested the line was during the last few months of 2024 and it successfully found support back then.
“All eyes on Dogecoin $DOGE! If it holds this level at $0.16 and bounces, a move to $2 could be next!” notes the analyst. This $2 target is roughly around where the asset would meet the middle line of the channel, a level that has also shown interactions with its price in the past.
It only remains to be seen, though, whether the memecoin will indeed find support and the Ascending Channel will continue to hold. There is always the chance of a breakdown with patterns like these, which, as mentioned earlier, can lead to bearish price action.
DOGE Price
At the time of writing, Dogecoin is floating around $0.176, down more than 20% over the last seven days.
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.
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