In the world of technical analysis, identifying recurring patterns in the price behavior of assets often provides insights that can inform price predictions. This method has been widely used by traders and analysts. Recently, Dogecoin ($DOGE DOGE ), the popular meme-inspired cryptocurrency, has shown signs of following a well-established bullish pattern, leading to speculation that its price could spike dramatically in the current cycle.
Cryptocurrency analyst Dima James Potts recently shared his observations with followers on X (formerly Twitter), highlighting that DOGE appears to be forming a familiar and historically profitable price pattern. Potts notes that this pattern aligns with his preferred trading setup — the “Head and Shoulders Inversion” formation — suggesting the potential for a substantial rally.
Historical Patterns and Potential Breakouts
Dogecoin’s price movements in past cycles have repeatedly followed this pattern, resulting in exponential gains each time. Potts notes that during Dogecoin’s first significant cycle, the cryptocurrency experienced an extraordinary rally of over 3,364% after closing the week above a critical resistance level, which he marks as a critical threshold on his analysis chart.
In a subsequent cycle, the price increase was even more substantial, reaching an impressive increase of 12,189%. Potts points out that each time DOGE surpassed this weekly resistance level, a parabolic breakout occurred. He believes that Dogecoin could be on the verge of another similar breakout given that it is once again approaching this resistance level.
Projected Price Movements
Based on Potts’ analysis, a successful breakout could see Dogecoin rocket towards the top of its historical price channel, potentially breaking past the $10 mark. Some projections indicate that if DOGE follows the historical pattern in its entirety, a spike to as high as $30 may not be out of the question.
With chart analysis suggesting that Dogecoin is approaching a key technical threshold, all eyes are on whether it will maintain the momentum needed to break through this level, potentially initiating another parabolic upward trend. If it does, DOGE could be poised for a substantial rally, driven by this recurring pattern that has previously marked some of the coin’s most significant gains.
Conclusion
As with any cryptocurrency, DOGE’s inherent volatility should be considered by potential investors. However, Potts’ analysis and past performance indicate that Dogecoin could see significant upward movement if the historical pattern holds. As DOGE approaches this critical resistance level, the coming weeks could be crucial in determining whether the meme coin once again reaches new heights in the ongoing cycle.
