Over the past few weeks, Dogecoin has displayed immense price strength surpassing crucial resistance levels, sparking optimism about its near-term performance. However, this bullish momentum could be about to see notable price swings, as predicted by one crypto analyst. withdrawals in the coming days.
Historical Trends Put Dogecoin Investors on a Bumpy Ride
Ali Martinez, a seasoned crypto expert and trader, explored the current and past price action of Dogecoin following its recent surge. After extensive research, the market expert revealed a shocking price trend that implies the dog-themed meme coin could see two key pullbacks in the short term.
The analyst highlights trends from the last two market cycles, which show recurring phases of sharp corrections before regaining strength, suggesting a similar price movement in the current bull cycle.
According to Ali Martinez, the coin experienced two significant corrections of around 40% and 84% during its 9,470% rally during the 2017 bull cycle. Furthermore, the same trend was observed in the parabolic phase of 2021, where the price of Dogecoin surged more than 30,700%, but saw two notable declines of 46% and 53%.
While DOGE is currently exhibiting remarkable bullish pressure, considered his next bull runAli Martinez’s view suggests that history could repeat itself and the digital asset could face two key corrections as it reaches pivotal levels. “Now, as DOGE appears to be entering another parabolic run, remember that corrections are part of the journey,” he said.
Interestingly, these anticipated declines could serve as areas of consolidation for the digital asset, allowing DOGE to stabilize and possibly strengthen its course towards more rallies.
So far, Martinez has highlighted patience and conviction as the two essential factors for an investor hoping to become a millionaire with Dogecoin, while noting that there is no need to panic about the recent drop of 13%.
Regarding the price action of Dogecoin in a shorter time frame, Martinez believes that a 45% increase could be imminent due to the formation of a bull flag pattern. In case the $0.35 support level remains stable, the expert complaints that this trend could trigger a 45% rally with the aim of reaching the $0.56 mark.
Retail investor sentiment towards DOGE outperforms Bitcoin
Despite possible pullbacks, Dogecoin continues to attract more interest from retail investors than Bitcoin, the largest cryptocurrency asset, as evidenced by a recent survey. led by Ali Martinez on which asset is ideal for an investment of $100 in the current phase of the market.
After receiving 83% of the vote against Bitcoin, Martinez claimed that “retail investors are turning to DOGE rather than Bitcoin. Since Bitcoin is often considered expensive, he said DOGE is gaining more attention as an alternative and profitable choice with profit potential, especially with the backing of a well-known business tycoon and billionaire. known. Elon Musk.
Featured image of Adobe Stock, chart from Tradingview.com