Technical analyst Ali Martinez reminded market participants that while Dogecoin (DOGE) has promising prospects, the asset will test their patience on the path to higher price levels.
Martinez issued this warning in a Friday post on X, highlighting a new bearish signal in Dogecoin’s near-term price action. He note that the TD Sequential indicator issued a sell signal for Dogecoin. This comes at a time when the asset has just rebounded from a 23% decline.
Today, Dogecoin is trading at $0.4200 after a 4% gain. The sell signal suggests that the recently reclaimed $0.40 region could be lost again due to another impending correction.
While this predicted outcome may hurt those who entered the Dogecoin market at the top, Martinez reminded investors that these declines are normal and part of the journey to unprecedented price territories. Ultimately, those who remain patient during a recession will be rewarded.
Historical Instances Where Dogecoin Rewarded Investors After Testing Their Patience
Martinez cited specific instances in Dogecoin’s history where major declines preceded the asset’s periodic parabolic runs.
For example, during the 2016/2017 cycle, Dogecoin experienced two major declines: a 39% price drop and a massive 84% drop. However, by the end of the cycle, Dogecoin’s total gains stood at over 9,400%.
Similarly, during the 2020/2021 season, Dogecoin saw corrections of 56% and 53% during its journey to an all-time high. However, his cumulative increase at the end of the season was around 31,000%.
Today, Martinez highlighted the possibility of Dogecoin soaring 3,233% from its current position. A resurgence which could allow it to reach a new high at $14. However, this goal is too ambitious, as it would lead to a DOGE market capitalization exceeding $2 trillion, surpassing Bitcoin’s current valuation.
Notably, this price prediction suggests that Dogecoin could mirror its historical patterns in an ascending price channel.
Other Factors Suggesting a Double-Digit Price for DOGE
Other market observers have argued for similar goals for Dogecoin by using different tools to observe its historical trends.
For example, Trader analyst Tardigrade pointed out that DOGE is currently testing the middle band of the Gaussian channel, suggesting a potential rally towards $11, as seen during past surges in 2017 and 2020.
Meanwhile, based on Fibonacci retracement levels, Martinez suggested Dogecoin could rally to $23which would be consistent with the 2.272 Fibonacci level that Dogecoin peaked at during the 2020/2021 bull run.
Conservative outlook for Dogecoin
Although these are ambitious price predictions for Dogecoin, some analysts have published more conservative outlook for the asset.
For example, Crypto analysts Scolfeild and Ash Crypto have argued that Dogecoin could peak at $3 during this season, with Ash noting that the meme coin could reach this price level in the next six to twelve months.
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