Dogecoin rebounded from the support level of the parallel channel, and analysts expect the next target price to be imminent. Dogecoin found support at the lower boundary of the parallel channel.
Analyst Ali Martinez analyzed Dogecoin's daily price movement from a technical analysis (TA) perspective, pointing out that it has formed a parallel channel pattern. A parallel channel refers to asset prices fluctuating between two parallel trend lines, with the upper boundary connecting consecutive highs and the lower boundary connecting lows.
Breaking the upper boundary of the channel usually signals a bullish trend, while breaking below the lower boundary indicates a bearish signal.
There are three types of parallel channels:
An ascending channel (trend line slopes upward, representing price upward consolidation), a descending channel (price declines over time), and a horizontal channel (the channel is parallel to the time axis, with asset prices fluctuating horizontally). Currently, Dogecoin is in the third form, which is a horizontal parallel channel.
Below is the daily chart of Dogecoin shared by Martinez, showing its price fluctuations within the parallel channel:
The Dogecoin parallel channel chart is shown. Recently, Dogecoin briefly tested the lower boundary of the channel, which effectively acted as a support level to prevent further decline and pushed the price to reverse.
Thereafter, Dogecoin continued to rise. Martinez believes its current target price is $0.19, which is the midpoint of the channel. If Dogecoin breaks through $0.19, the next target may be $0.26, corresponding to the upper boundary of the channel, which had formed resistance multiple times in May.
From the current price perspective, breaking the upper boundary indicates a potential increase of over 50%. However, whether Dogecoin can maintain its upward momentum and whether the channel lines remain effective still requires further observation. As of the time of publication, Dogecoin's price is approximately $0.166.
