In a recent tweet, crypto analyst Ali predicts an epic breakout scenario for the first and largest dog-themed cryptocurrency by market cap, Dogecoin (DOGE).
In a recent tweet, crypto analyst Ali predicts an epic breakout scenario for the first and largest dog-themed cryptocurrency by market cap, Dogecoin (DOGE).
Dogecoin experienced lackluster price activity in April, closing the month down 40%. May also got off to a slow start for the dog coin, with its price falling 3.39% so far. Dogecoin’s current price activity has piqued the interest of traders and analysts, with many eagerly watching its movements to see what happens next.
According to the cryptanalyst Ali, Dogecoin’s price drop is typical of its behavior before major bull runs. Furthermore, Dogecoin’s current 47% drop could be a healthy pullback, paving the way for a possible bull run amid a breakout of a descending triangle pattern.
The descending triangle pattern, characterized by lower highs and horizontal support levels, typically signals a period of consolidation followed by a breakout. Given Dogecoin’s history, the breakout of this pattern could be especially notable.
Ali cites examples to make his point. In 2017, DOGE broke out of a descending triangle. The price subsequently retraced 40% before entering a 982% bull run. Similarly, in 2021, Dogecoin broke out of a descending triangle and then retraced 56% before rising a whopping 12,197%.
Fast forward to 2024, and Dogecoin has once again broken out of a descending triangle and is currently experiencing a 47% price correction, very similar to previous cycles.
With DOGE breaking out of a descending triangle pattern and undergoing a significant correction, the stage could be set for a potential bull run, propelling the dog coin to new highs.
However, as with any prediction in the cryptocurrency market, there are no guarantees and past performance does not guarantee future results. It remains to be seen whether Dogecoin will reach new highs or not.
At the time of writing, Dogecoin was up 2.93% over the past 24 hours to $0.128, reflecting the overall market rebound following a drop in early May.
