Dogecoin Will Increase by 6.770% If This Pattern Holds: Cryptocurrency Analyst

An analyst has explained why Dogecoin could see a price increase of about 6,770% if this pattern continues for this meme coin. Dogecoin has been trading within a long-term uptrend channel In a recent post on X, analyst Ali Martinez discussed a long-term pattern that Dogecoin's price has been trading within on a weekly basis. The pattern being referenced is the Ascending Parallel Channel from technical analysis. A parallel channel is a consolidation pattern formed when the price of an asset moves within two parallel trendlines. The upper line is created by connecting consecutive peaks, while the lower line connects the bottoms. While the asset is within the channel, it is likely to face resistance at the upper channel line and support at the lower channel line. Breaking either of these levels could imply the continuation of the trend in that direction. There are three types of Parallel Channels: parallel channels with a time axis, channels with positive slope, and channels with negative slope. The first type does not have a specific name, but the second and third types do; they are called Ascending Parallel Channel and Descending Parallel Channel. With the way these two types have a downward trend, they correspond to consolidation phases in assets occurring in either an upward or downward direction. Dogecoin seems to have moved within such a pattern over the past decade, as the chart shared by the analyst shows.

From the chart, it can be seen that the price of Dogecoin has been trapped inside this upward parallel channel throughout its history. The most recent test occurred at the beginning of the year when DOGE found a recovery from the bottom. As Martinez highlighted in the chart, the current trajectory of DOGE is reminiscent of the trends seen in the two most recent bull cycles. In each of those price hikes, the cryptocurrency experienced an initial explosion followed by a minor correction leading to a significant surge. Over the past few weeks, Dogecoin has declined, perhaps indicating that it is currently in a gradual decline phase. Considering what has happened in previous cycles, it is likely that this meme currency will soon begin a price increase and reach its peak at the highest level of the uptrend channel. Based on the current distance from the upper level of the channel, analysts have noted that Dogecoin will need a 6,770% price increase to reach there. It is still unclear whether the ascending channel will continue to hold for this meme coin and whether something similar to history will occur at this time. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)