An analyst has explained how Dogecoin could see an increase of around 6770% if this pattern continues for Memecoin.
Dogecoin is trading inside a long-term bullish channel
in a new post At X, analyst Ali Martinez discussed the long-term pattern in which Dogecoin's weekly price is trading inside. This is the desired pattern Ascending parallel channel From technical analysis
A Parallel channel Refers to a consolidation pattern that forms when the price of an asset moves within two parallel trend lines. The top line is made by connecting successive tops together, while the bottom line connects the bottoms.
While the asset is inside the channel, it is likely to face resistance at the top line and support at the bottom. Leaving any of these levels can mean the continuation of the trend in that direction.
There are three types of parallel channels: those parallel to the time axis, those with a positive slope, and those with a negative slope. The first type does not have a specific name, but the second two types do. They are known as ascending and descending parallel channels respectively.
Given that these two types have steep trendlines, they correspond to consolidation phases in the asset that occur either upwards or downwards. As the chart shared by the analyst shows, Dogecoin seems to have moved in such a pattern over the past decade.
From the chart, it can be seen that the 1-week price of Dogecoin has been stuck inside this ascending parallel channel throughout its history. The last retest came just earlier in the year when DOGE found a retracement from the bottom line.
As Martins highlighted in the chart, DOGE's current trajectory is reminiscent of the trend seen over the last two periods. Bull cycles. In each of these uptrends, the cryptocurrency saw an initial spike to the upside, followed by a small decline, leading to a decent rally.
Over the past few weeks, Dogecoin has been on the decline, perhaps indicating that it is currently in a bearish phase. Considering what happened next in the past cycles, it is possible that MimeCoin will soon start a rally that will be at the upper level of the ascending channel.
Based on how far the top of the channel is now, the analyst noted that a 6,770% increase in Dogecoin would be needed to reach the channel. Now it remains to be seen if the bullish channel will remain for Mimcoin and if something similar will happen this time in history.
DOGE price
At the time of writing, Dogecoin is hovering around $0.32, up more than 2% in the past seven days.
