Dogecoin targets a potential 1,503% rally after a breakout from a descending wedge pattern, with targets above $2. Despite falling over 6% today and hovering around $0.1248, market data suggest a bullish reversal may be on the horizon. In a recent post on X, analyst Ali Martinez highlighted that Dogecoin is breaking out from a descending wedge pattern, indicating imminent upside potential for the meme coin. Martinez’s 12-hour chart analysis shows that DOGE has broken a downtrend that started since its Q1 bull rally.
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Temporary 44% Price Increase Expected
The pattern features two converging trend lines, with the price trending downward, ultimately forming a symmetrical triangle. According to Martinez’s observation, the breakout from this wedge indicates a potential short-term upward price movement that could add $0.05590 to the current price. Specifically, he expects Dogecoin to rally by 44% soon, reaching $0.1844.
In a subsequent update, Martinez expressed confidence in Dogecoin’s prospects. He disclosed that he has been accumulating DOGE without selling. His observation of historically bullish patterns on Dogecoin fuels his optimism. The weekly chart accompanying his update illustrates three distinct descending triangle patterns in DOGE’s price history. Each pattern led to significant rallies and subsequent retracements.
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For example, after the first triangle pattern in the 2015-2016 cycle, Dogecoin saw a 229.58% rally, followed by a 60% retracement. In the second emergence (2018-2021), Dogecoin experienced a 138.04% rally before a 56.20% retracement. Meanwhile, in the current triangle formation, spanning from 2022 to the present, Dogecoin surged 207% in Q1 2024 but then crashed by 60%.
Analysts See Potential Rebound
Now, Martinez envisions Dogecoin rallying toward $2 in the next resurgence. With a current value of $0.1247, Dogecoin would need to surge approximately 1,503% to reach $2.
Martinez’s observation of a potential pattern reversal in Dogecoin’s movement is echoed by other market analysts. An analysis by Rekt Capital also confirmed that Dogecoin is resisting its major downtrend line, establishing support for a potential uptrend.
A few months ago, DOGE broke out from its long-term downtrend originating from its 2021 peak, reaching a multi-year high of $0.2054 on March 5. Although Dogecoin has lost most of these gains, analysts expect a significant rebound soon. Transitionally, the market watches closely as Dogecoin’s potential for a massive rally unfolds.
