Will Dogecoin Rise 6 Thousand Percent? This Pattern is Key!

Bittime - Dogecoin, a cryptocurrency that was originally created as a joke, is now attracting the attention of many investors. An analyst recently explained how Dogecoin could experience a significant price spike, reaching around 6,770%, if a certain pattern continues. Here's a deeper dive into this pattern and what it means for the future of Dogecoin.

Potential Dogecoin Price Surge: Up 6 Thousand Percent?

Based on how far the upper level of the channel is currently, the analyst notes that Dogecoin would need to rally by 6,770% to reach it. This is a very ambitious number, but if this pattern continues, it is not impossible for Dogecoin to reach that level.

Source TradingView/@ali_charts

Dogecoin Price Chart Analysis

From the analyzed charts, it can be seen that the weekly price of Dogecoin has been stuck inside the Rising Parallel Channel throughout its history. The most recent retest occurred earlier this year when DOGE found a rebound from the bottom line of the channel.

As highlighted by Martinez, DOGE's current trajectory is reminiscent of the trend seen during the last two bull cycles. 

In each such bull cycle, this cryptocurrency experiences an initial spike followed by a small dip leading to the actual bull rally.

Is Dogecoin in a Long-Term Parallel Channel Pattern?

In a post on the X platform, analyst Ali Martinez discussed the long-term pattern in which Dogecoin's weekly price has traded. The pattern in question is the Ascending Parallel Channel from technical analysis.

Read too How to Buy Dogecoin (DOGE)

What is Parallel Channel?

Parallel Channel is a consolidation pattern that forms when the price of an asset moves within two parallel trendlines. The top line is formed by connecting successive peaks, while the bottom line connects the lows.

When an asset is inside this channel, it is likely to encounter resistance at the top line and support at the bottom line. 

If the price breaks one of these levels, it could indicate a continuation of the trend in that direction.

Read too Dogecoin: Explained, DOGE $1 Predictions, and Functions

Types of Parallel Channels

There are three types of Parallel Channels:

1. Parallel Channel with Time Axis: Does not have a special name.

2. Rising Parallel Channel: Has a positive slope.

3. Descending Parallel Channel: Has a negative slope.

The last two types reflect a consolidation phase in an asset that occurs in an upward or downward direction. Dogecoin appears to have moved within one of those patterns over the past decade, as shown by charts shared by analysts.

Doge Temporary Decline Phase?

Over the past few weeks, Dogecoin has experienced a decline, which may indicate that it is currently in a temporary decline phase. 

Based on the pattern that occurred in the previous cycle, it is possible that this meme coin will soon start a rally that will peak at the upper level of the Rising Channel.

Read too Dogecoin Price Predicted to Rebound According to This Crypto Analyst

Latest Dogecoin DOGE to IDR prices

Price Doge ke IDR Latest via Market Bittime

Dogecoin is currently trading at around 5,081.2 IDR, with a change of -2.39% in the last 24 hours. 

This chart shows that DOGE price is within the Bollinger Bands which indicates market volatility. 

The middle line of the Bollinger Bands is at IDR 5,580.5, while the upper and lower lines are at IDR 6,741.9 and IDR 4,419.2 respectively.

Conclusion: Awaiting the Future of Dogecoin

Now, all that remains to be done is to monitor whether this Rising Channel will continue to persist for this meme coin and whether something similar to history will happen this time. With high volatility in the cryptocurrency market, Dogecoin remains an interesting asset to keep an eye on.

FAQ

1. What is meant by Ascending Parallel Channel in Dogecoin analysis?

Ascending Parallel Channel is a technical pattern where the price of an asset moves within two parallel trendlines that point upwards. The top line connects price peaks, while the bottom line connects lows. This pattern indicates a consolidation phase and can provide signals about potential future price movements.

2. How can this pattern affect the price of Dogecoin?

If Dogecoin remains within the Ascending Parallel Channel, there is a possibility that the price will experience a significant spike. The analyst noted that if this pattern continues, Dogecoin could see a rise of up to 6,770% to reach the upper level of the channel. This shows attractive bullish potential for investors.

3. What happened to Dogecoin during the previous bull cycle?

Over the last two bull cycles, Dogecoin showed a similar pattern, where the price experienced an initial spike followed by a small decline before starting a larger rally. Currently, Dogecoin seems to be in a temporary decline phase, which could be a step towards the next rally.

4. What should investors pay attention to regarding this pattern?

Investors are advised to monitor the resistance and support levels indicated by the Ascending Parallel Channel. Additionally, it is important to pay attention to other technical indicators and overall market developments to determine the right time to enter or exit their positions.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Keshav Verma, Dogecoin To Rally 6,770% If This Pattern Holds: Crypto Analyst, Accessed December 31, 2024

Author: IN