After a sharp decline in recent weeks, the price of Dogecoin may be nearing the end of its bearish cycle as historical chart patterns indicate a new bullish trend across multiple timeframes. Despite the downturn, a cryptocurrency analyst has pointed out that this meme coin, currently fluctuating around $0.20, could surge to a new all-time high of $5.
Dogecoin price roadmap to $5
In a post on the social media platform X on August 4, renowned market expert 'CryptoELITES' painted an extremely optimistic picture for Dogecoin prices. The analyst believes that DOGE may be on track to achieve its next major bullish target, forecasting a strong rally to $5. This optimistic outlook comes despite the fact that this meme coin has fallen more than 10% this week and continues its downward trend.
Based on analysis from CryptoELITES, Dogecoin may soon end this bearish spiral and begin a new upward trend. The accompanying chart from the analyst shows an attractive long-term bullish pattern for this cryptocurrency. Over the past few years, Dogecoin has followed a consistent structure of descending triangle patterns, each resolved by strong bullish breakouts.
Each descending triangle seen on the chart has appeared during previous bull market cycles. This pattern begins with a strong bullish rally, followed by an extended consolidation phase marked by a series of lower highs and relatively equal lows. As the price is compressed to a critical point, Dogecoin often breaks out strongly in an upward direction. This trend has repeated itself multiple times over the years, with each breakout pushing the price of this meme coin higher than before.
According to the latest chart, Dogecoin has once again formed a descending triangle pattern, but this time after a consolidation following the peak bull run of 2021. The price is currently fluctuating just above the breakout zone, which is where previous bull runs were triggered. CryptoELITES has marked this area with a circle, indicating accumulation potential. If past patterns repeat, Dogecoin could enter a vertical growth phase, potentially targeting the area marked on the chart around $5.14.
The short-term reversal of Dogecoin is underway.
Regarding the short-term outlook for Dogecoin, cryptocurrency market analyst James Bull has shared an analysis on X, outlining the near-term bullish targets for this meme coin following the recent crash. Bull notes that Dogecoin is currently fluctuating around the important support level of $0.19538. After experiencing a sharp decline from previous highs, DOGE has now returned to this historically strong support area, which previously served as an important pivot point.
Expert analysis indicates a bullish trade setup with the potential to open long positions targeting $0.27144. A clear stop-loss has been placed just below the support zone, creating a potential risk/reward ratio for traders. If buyers can defend this support level and push the price of the meme coin up, this could confirm the analyst's short-term reversal theory and potentially signal the beginning of a larger upward trend.
