In a recent tweet, Ali, a crypto analyst, forecasts an epic breakout for Dogecoin (DOGE), the leading dog-themed cryptocurrency by market capitalization.
April witnessed lackluster price movements for Dogecoin, resulting in a 40% decline by month-end. May also commenced sluggishly for the coin, with a 3.39% decrease in its price so far. This has sparked the interest of traders and analysts, who closely monitor Dogecoin’s movements.
Analyst’s Insight
Ali suggests that Dogecoin’s current price decline is typical before major bull runs. He sees the current 47% fall as a healthy retracement, potentially leading to a bull run, especially amidst a breakout from a descending triangle pattern.
The descending triangle pattern, marked by lower highs and horizontal support levels, often indicates a consolidation phase followed by a breakout. Given Dogecoin’s historical trends, a breakout from this pattern could be significant.
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Ali supports his analysis with historical examples. In 2017, Dogecoin broke out of a descending triangle, experiencing a subsequent retracement of 40% before embarking on a 982% bull run. Similarly, in 2021, it encountered a 56% retracement before skyrocketing by 12,197%.
Current Breakout Situation
In 2024, Dogecoin breaks out of a descending triangle, experiencing a 47% price correction, similar to past cycles. This breakout, coupled with the significant correction, suggests Dogecoin may be primed for a bull run, potentially hitting new highs.
Related article: Dogecoin’s Journey to $0.20: A Tale of Ups and Downs
However, Ali cautions that cryptocurrency market predictions carry no guarantees, and past performance does not ensure future outcomes. At the time of writing, Dogecoin has surged by 2.93% in the last 24 hours, reaching $0.128, reflecting a general market rebound following a May slump.
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