In the past week, Dogecoin (DOGE) has recorded an increase of over 17%, following the strong upward trend of the altcoin market, contributing to pushing the total market capitalization of cryptocurrencies past the $4 trillion mark. However, DOGE is currently facing a significant resistance level at $0.25 – a price that could play a decisive role in maintaining the current upward momentum.
Ali Martinez Points Out Breakout Signals Based on the Double Bottom Pattern
Renowned market analyst Ali Martinez has made an optimistic assessment of the technical situation of DOGE. In a social media post on July 18, he noted that DOGE's daily price chart has formed a 'double bottom' pattern – a classic technical pattern that often signals a bullish reversal.
Specifically, DOGE has formed two bottoms around the price range of $0.13–$0.15 in April and June, separated by a recovery to $0.25 in May – creating the 'neckline' of the pattern. Recently, market momentum has pushed DOGE back near $0.24, completing the 'W' structure of the double bottom pattern.
Breakthrough from the $0.25 Level Could Trigger an 82% Surge
According to Martinez's analysis, if DOGE can decisively break through the resistance level of $0.25 – that is, surpassing the neckline of the double bottom pattern – it will send a strong buy signal, paving the way for a significant price increase.
Predicted, if the breakout is successful, DOGE could aim for a price target of $0.42, corresponding to a potential increase of about 82.3% from the current price.
However, in the opposite scenario – if DOGE continues to be rejected at the resistance level of $0.25 – this could weaken the current bullish momentum and lead to a correction back to familiar support zones around $0.13–$0.15.
Strong Growth Signs: Trading Volume Doubles
As of the time of writing, DOGE is trading at around $0.25, up 7.84% in the past 24 hours. Notably, the daily trading volume has increased by more than 108.5%, indicating a significant rise in trading activity and market optimism.
This reflects that investors are actively 'catching the wave' of the upward trend, expecting DOGE to successfully break the $0.25 threshold to establish a new bullish cycle.
Current Position of DOGE in the Market
With a market capitalization of $34.95 billion, Dogecoin is currently ranked 9th in the list of the largest cryptocurrencies in the world and is the largest memecoin on the market.
Conclusion
The formation of the double bottom pattern, combined with strong price momentum and increasing trading volume, are positive signals for Dogecoin. However, the resistance at $0.25 will be the key 'battle' between bulls and bears. If DOGE can break through successfully, the ascent to the $0.42 range is completely within reach.