A crypto analyst’s long-term technical analysis of the Dogecoin price highlights a repeating historical pattern from 2021. The analyst suggests that if Doge‘s price action can completely mirror this trend, it could trigger a rally above $10.
Dogecoin Price Follows Repeating Market Cycles
Dima Potts, a crypto technical analyst on X (formerly Twitter), shared a post delving deep into Dogecoin’s current and historical price action, which indicates a potential for a significant uptrend. Potts highlighted a Dogecoin chart on the weekly timeframe, showing the meme coin’s price movements within an upward channel.
The chart details a repeating pattern in which Dogecoin mimics a similar cycle pattern every few years. Each cycle begins with a rounded accumulation phase highlighted by the red and green curves in the chart, followed by a significant breakout that leads to a considerable price surge. After each parabolic price rise, the meme coin retraced and entered another accumulation phase before attempting another breakout.
In the price chart, the white lines represent a long-term Ascending Channel, which DOGE has been trading within since 2014. Historically, Dogecoin has bounced off the lower white trendline multiple times, leading to a major price surge, which saw the meme coin hit the upper white trendlines. Interestingly, the cryptocurrency has hit this lower white trendline every fourth year in a bull cycle.
In 2017, Dogecoin hit the lower ascending channel trendline, triggering a price rally towards $0.01 in 2018. A similar movement occurred in the 2021 bull market, where DOGE reached the lower trendline and skyrocketed to an ATH the same year.
Fast-forward to the current bull cycle. Potts suggests that Dogecoin’s current price action indicates that it is once again at the lower trendline. If historical trends repeat, the cryptocurrency is expected to begin an upward reversal soon, entering stage two of its parabolic rise.
DOGE Predicted To Reach $10
In his analysis, Potts points out that significant bullish price reversals often occur every four years, including during the 2017 and 2021 cycles. Based on this trend, Dogecoin’s current market structure shows a strong possibility that an upward move is imminent.
His chart shows that in each cycle, Dogecoin has hit the upper boundary of the ascending channel, indicating a surge to its highest price point at the time. If this trend were to occur again, then Dogecoin could follow the trajectory of its long-term ascending channel and possibly reach an all-time high above $10.
Considering the meme coin is still trading below $1, this price prediction may seem rather ambitious. CoinMarketCap’s data shows that DOGE’s price is currently sitting at $0.17, highlighting a 40% price crash. The meme coin’s performance over the past week has been bearish, driven by broader market downturn and volatility. Nevertheless, analysts like Potts remain optimistic about the future outlook of meme coins.
Featured image from Unsplash, chart from Tradingview.com
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