Crypto expert Ali claims that Dogecoin could rise by 6,770% if it stays in the ascending parallel channel pattern.
Cryptocurrency analyst Ali took to X to express positive analysis on December 30, noting that a 6,780% rally is likely if Dogecoin (DOGE) remains in the current ascending parallel channel pattern. While there is excitement about the future of DOGE, looking at price action and technical indicators offers deeper insight into the cryptocurrency’s current situation.
DOGE is trading at $0.3215 after peaking above $0.50 earlier this year and consolidating lower. The price appears to be trading in a range, with $0.30 being important support and $0.35 to $0.40 being important resistance. These levels correspond to historical fair value gaps (FVG), unfilled liquidity zones and potential future retracement zones.
The price was recently rejected near the $0.45 resistance zone, suggesting selling pressure at higher levels. Consolidation in the $0.30 to $0.32 range indicates that DOGE is trying to find a bottom, but many FVGs below $0.30 could open to lower targets if the bears continue to keep the market low.
The moving average convergence divergence shows a bearish crossover, with the MACD trend below the signal line. This suggests that the bullish momentum from the bears has deepened, especially after the decline from the November highs. There will be longer red bars in the histogram, indicating increased selling pressure as DOGE fails to tighten above higher levels.
DOGE sentiment is mixed as the current market sentiment about it is mixed and to some extent depends on overall market conditions. Although it retains support from its loyal loyal base, macroeconomic uncertainty and broader crypto market conditions have moderated bullish enthusiasm. Additionally, much of the DOGE market is speculative and based on open interest data, which, of course, is a concern for the stability of the token during times of low market activity.
DOGE is in a consolidation phase, with $0.30 to $0.32 as the buying zone and $0.35 to $0.40 as key resistances. Bearish momentum remains according to technical indicators, such as MACD and open interest. However, downside risk is presented by the large liquidity gap currently below. To regain bullish momentum and continue its upward trajectory, DOGE must reclaim these key resistance zones and bullish momentum.