Dogecoin price could be preparing for a strong upward movementas a crypto analyst has identified a recurring pattern in the meme coin’s movements. This optimistic view of Dogecoin’s future trajectory comes after the meme coin saw a serious drop in prices by more than 46%, pushing it to new lows.
Dogecoin price gears up for a major bullish move
During his decline in prices In December, Dogecoin experienced a massive 46% crash, falling from its yearly high as its momentum suffered a significant cooldown. Despite this correction, the The coin itself shows signs of recoveryexperiencing renewed strength after recording substantial gains in January.
Crypto analyst Maelius common on X (formerly Twitter) that Dogecoin’s recent crash may have pushed its price to its lowest point, potentially paving the way for its next upward move. According to its analysis report, which notes Dogecoin’s price action over previous cycles, the consistency in the magnitude of previous waves reinforces the likelihood that the meme coin has already hit rock bottom.
Looking at the analyst’s Dogecoin chart, the same coin price history reveals a recurring pattern of cyclical waves characterized by massive rallies followed by sharp corrections. Each upward movement, marked by a wave number on the chart, has strengthened over individual cycles.
For example, in April 2021, Dogecoin saw a 53% decline, followed by a massive 1,175% surge to reach new all-time highs. A similar but larger price collapse occurred during the bear market from July 2022 to 2023. At the time, the price of Dogecoin experienced multiple price declines and a prolonged consolidation period. Towards the end of 2023, the meme coin saw a modest recovery, with its price increasing by 308%.
Another notable aspect of Maelius’ analysis is the highlighting shopping area on the Dogecoin price chart. This critical area has historically served as an important supply level for Dogecoin, representing a price range where demand is increasing and accumulation occurs.
According to Maelius, Dogecoin has bounced off this buying zone, a development seen as a positive move for the meme coin’s next upward move. Convinced that Dogecoin has bottomed and its recent rebound out of the buy zone, the analyst predicts a bullish surge that could push the same coin to a lower level. new absolute record of $2.3.
Maelius also pointed out that each upward movement in previous cycles was more powerful than the previous one, implying that The Next Dogecoin Price Rally could be even stronger than those observed during previous cycles.
Dogecoin price chart forms bullish pennant
A New Dogecoin Price Analysis by Trader Tardigrade watch that the same piece is currently form a new bullish pennant on its 4-hour chart. A bull pennant is a technical chart pattern resembling a small symmetrical triangle, indicating a potential continuation of the upward trend.
In the case of Dogecoin, the formation of a bullish pennant suggests that after experiencing a previous rally, Dogecoin consolidates and could prepare for further price increases as it breaks out of this trend. Data from CoinMarketCap reveals that Dogecoin is slowly gaining momentumup 19.3% over the past week to a price of $0.38.
Featured image created with Dall.E, chart from Tradingview.com