Dogecoin is currently at a significant juncture in its market cycle, and a recent evaluation by cryptocurrency analyst Ali Martinez suggests that the upcoming action could either make or break its trajectory. In a post on the social media platform X, Martinez elaborated that Dogecoin’s capacity to initiate a surge depends on its ability to maintain above a vital support area around $0.16.
His prediction relies on a technical analysis of Dogecoin’s long-term price patterns, indicating that the meme token has sustained a continual upward trend channel since 2015, fluctuating between support and resistance levels throughout each period.
Eight-Year Ascending Channel On Dogecoin’s Weekly Candlestick Chart
Ali Martinez’s optimistic perspective is founded on his technical insights derived from Dogecoin’s weekly candlestick visualization. The analyst highlighted that DOGE has been trapped within an upward-sloping channel since 2015, characterized by higher peaks and higher troughs over the years.
This formation has consistently propelled the coin to unprecedented highs during bullish phases while also delineating the limits for corrections in bearish markets. The channel itself is divided into two sections by a rising trendline that has acted as both support and resistance.
Martinez posits that a similar setup may be materializing once more. Dogecoin’s value encountered resistance near $0.48 in December 2024 and has since decreased over the past three months. Presently, the meme token is trading close to the lower trendline of the ascending channel, and its reaction at this point could either determine or alter its price trajectory for the remaining year.
A Rebound From $0.16 Could Initiate A Surge Toward $14
The lower support trendline has been critical in Dogecoin price surges, with the most recent instance being its contribution in Q4 2024. During that period, DOGE rebounded at the lower trendline, which was positioned around the $0.09 level and subsequently embarked on a rally that resulted in its price rising by approximately 430%. At the moment of writing, the lower trendline support, which is expected to establish a higher peak, is currently positioned around the $0.16 price mark.
The ideal scenario for Dogecoin is to bounce back at this lower trendline, and Martinez emphasized that holding steady above $0.16 could serve as a launching pad for a substantial rally. If the support level remains intact, he predicts that Dogecoin could start climbing toward the mid-range of the channel, estimated to be around $2.5.
A rise to $2.5 would position Dogecoin at new all-time records and convert the mid-range trendline into a support level. Sustained strong momentum could then propel Dogecoin to ultimately reach the upper limit of the channel near $14. Nevertheless, there might be corrections occurring during these transitions.
The implications of failing to retain this support are equally critical. Dropping below $0.16 would cause the support trendline to shift down. In such a scenario, DOGE might be susceptible to more substantial declines and extended consolidation. At present, Dogecoin is trading at $0.1754, showing an increase of 3.5% in the previous 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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