Despite the mushrooming of meme coins in the market, Dogecoin is unlikely to fade into obscurity owing to its robust community of fanatics. But what are the odds of the canine-themed token reaching a price of one dollar in the foreseeable future?
A closely followed analyst in the crypto space says that Dogecoin could be on the verge of a full-blown bull market based on historical trends.
Why DOGE Could Soon See A Mouthwatering Breakout
Crypto strategist Ali Martinez told his 61.1k followers on the X social media platform that Dogecoin’s recent price correction is typical for the top meme coin before a spectacular bull run.
DOGE recorded sluggish price action in April, closing the month down over 35%. But May has started positively after climbing 4.9% in the past 24 hours.
Martinez highlighted that DOGE broke out of a descending triangle technical formation in 2017. Then, the dog-themed crypto retraced by 40% before embarking on a 982% parabolic surge. Similarly, in 2021, DOGE broke out of a descending triangle and then plummeted 56% before rocketing by a whopping 12,197%. Breaking out of a descending triangle pattern suggests that the downward momentum is weakening, and a potential reversal to the upside may be looming.
And now in 2024, Dogecoin has once again broken out of a descending triangle and is currently experiencing a 47% price correction, similar to past cycles. This suggests DOGE may be building for a strong exit from the weeks-long period of consolidation. So, if history repeats, we may see a bullish Dogecoin price breakout following the latest correction.
“Over the years, Dogecoin appears to mirror its previous bull cycles! All you need is a little bit of patience,” Martinez summarized.
However, it pays to recall that past price movement does not guarantee future outcomes. As such, any price forecasts in the crypto space should be taken with a grain of salt.
DOGE is changing hands for $0.1303 at publication time, reflecting a market-wide recovery after a rough couple of days leading up to the United States Federal Reserve deciding not to adjust interest rates. Whether DOGE hits a dollar in the next bull cycle is anyone’s guess.