Dogecoin (DOGE) is showing signs of a significant upward movement, with a recent jump of 1.13%, bringing its trading price to around $0.11. Meanwhile, market analyst Ali Martinez suggests that DOGE is breaking free from a long-standing descending triangle pattern, which could lead to an impressive rally. If history repeats itself, Dogecoin might be on the verge 200% rise.
Dogecoin’s Next Big Rally?
In a recent tweet, Martinez noted that Dogecoin might be following a familiar historical pattern that could signal a major rally soon. Martinez highlighted a sequence of events that has played out before, which could repeat itself.
The crucial aspect of this pattern is a breakout from a multi-year descending triangle. Historically, such breakouts have led to impressive price increases—often around 200%. After reaching these peaks, Dogecoin typically experiences a significant retracement, where it loses about 60% of its value before gearing up for another bull run.
Currently, Dogecoin appears to be at a similar stage in this cycle. Following a notable price increase, the cryptocurrency recently faced a significant pullback of 65%. This retracement has sparked speculation that DOGE may be on the verge of another breakout.
Support Levels to Watch
Recent data from Intotheblock reveals that Dogecoin has regained a substantial supply of 43.72 billion coins across about 124,480 addresses after breaching the $0.108 mark. This recovery could provide a stable support base, helping to reduce selling pressure from traders who are currently in profit.
However, amid recent market corrections, Dogecoin’s price has pulled back from $0.132 to $0.10, marking a 21% decline. Geopolitical tensions, especially between Israel and Iran, have added to the selling pressure.
Analysts warn that if this trend continues, DOGE could drop another 10.5% to reach a new support level of around $0.1. If this support holds, it may set the stage for buyers to push prices back above the previous peak of $0.13.
