In a new post on X, analyst Ali Martinez discusses the long-term pattern of weekly price formation for Dogecoin. This pattern is known as an 'ascending channel' in technical analysis (TA), which is a type of parallel channel.

A parallel channel is a consolidation pattern where the asset's price is confined between two parallel trend lines. The upper boundary may form resistance, while the lower boundary may form support.

Breaking above either line may indicate that the trend will continue in that direction. In other words, a breakout above the channel is a bullish signal, while a breakdown below the channel is a bearish signal.

Depending on the orientation of the trend lines relative to the axes, parallel channels can be divided into three types. An upward-sloping channel (where the trend lines follow higher lows and higher highs) is called an ascending channel. When an asset is within this type of channel, its price undergoes net upward consolidation.

Similarly, the opposite-sloping trend lines are called descending channels, representing downward consolidation. The third case, where the trend lines are parallel to the time axis, has no special name.

Now, here is the chart shared by the analyst, showing that Dogecoin's weekly price has been trading within an ascending channel for the past decade:

As shown in the figure, Dogecoin's price recently fell sharply, approaching the lower limit of the channel at $0.16. The last time Dogecoin tested this line was in the last few months of 2024, when it successfully found support.

"Everyone is watching Dogecoin $DOGE! If it holds at the $0.16 level and rebounds, the next step could be up to $2!" the analyst pointed out. The $2 target price roughly corresponds to where the asset intersects with the midline of the channel, which has interacted with its price in the past.

However, whether the memecoin will truly find support, and whether the ascending channel can continue to hold, remains to be seen. Such patterns always carry the risk of a breakdown, which, as mentioned, could lead to a bearish price trend.

DOGE Price

At the time of writing, Dogecoin's price is approximately $0.176, down over 20% in the past seven days.

#美股大跌 #Strategy申请发行优先股 #BBVA获批提供BTC及ETH交易 $BTC$DOGE