In a new post on X, analyst Ali Martinez spoke about the weekly price of Dogecoin entering a historically significant buy zone. Below is the chart shared by Martinez, showing this trend.
As can be seen in the chart, the weekly price of Dogecoin has almost followed an Ascending Channel over the past decade. The "Ascending Channel" here refers to a technical analysis (TA) pattern formed when an asset trades between two upward-sloping parallel trend lines.
The upper line of the model tracks the subsequent higher peaks of the price, while the lower line connects the higher lows. The upper line is considered a source of resistance and the lower line a source of support.
While this may be true, Dogecoin has dropped below the lower line of the long-term ascending channel several times over the years, the most recent being this year.
However, in each of these instances, the asset found support at the trend line just below the lower level of the Ascending Channel. The analyst described the shaded area between these two lines as a "historically strong buy zone."
Looking at the chart, it is clear that many significant bullish runs of DOGE began after the price retested this area. Currently, the token is trading within this zone, with recent attempts to re-enter the ascending channel having failed.
It remains unclear whether Dogecoin will break into this channel and potentially create another bullish run or whether this cycle will break the pattern.
The Ascending Channel is simply a type of pattern with parallel trend lines that exists in TA. When the consolidation of the asset occurs downward, this pattern is called a Descending Channel.
As Martinez pointed out in another post on X, another memecoin, Pudgy Penguins (PENGU), recently broke out of such a channel.
As shown in the chart above, the 1-hour price of Pudgy Penguins has slipped inside the Descending Channel over the past two weeks but has just surged above the resistance line. "PENGU targets $0.041 after breaking out of the descending channel!", the analyst stated.